Unilever Finally Ready to Spin Off Its Ice Cream Business

Unilever has previously decided to separate its global ice cream division into an independent company, but the timetable has been revised over the course of the year.

According to the latest update, the spin-off of the ice cream business – The Magnum Ice Cream Company (TMICC) – will take place at the beginning of December.

In a stock exchange announcement on 4 November, Unilever presented an updated schedule for the divestment, which is set to occur on 6 December. The newly independent company, The Magnum Ice Cream Company (TMICC), will begin trading on the stock exchange from 8 December.

The separation is a strategic move aimed at making the group more focused and efficient within its core businesses, Unilever explains on its website.

The ice cream division – which includes well-known brands such as Ben & Jerry’s, Magnum and Cornetto – differs significantly from Unilever’s other operations. It is more seasonal, more capital-intensive, and requires a specialised cold-chain logistics system, which makes it difficult to integrate with the group’s other business areas such as beauty, personal care, home care and foods.

According to Unilever’s board, there is no longer sufficient complementarity between the ice cream division and the rest of the company.
The board also believes that the ice cream division – a global market leader – will have better opportunities for growth and innovation as an independent company.

The Magnum Ice Cream Company (TMICC) is valued at around 15 billion euros. After the separation, Unilever will retain a 19.9% stake in the new independent company for up to five years.