Magnum spins out of Unilever: a clearer investment story but a cool valuation
Unilever has completed the de‑merger of its ice cream arm, with The Magnum Ice Cream Company (TMICC) debuting in Amsterdam. TMICC, which includes Ben & Jerry’s, Cornetto and Wall’s, is now the world’s largest ice‑cream player with roughly a 21 per cent share of global sales. The initial market reaction has been cool and the valuation is about $9bn, but the aim is to create two clearer, more focused businesses, although Unilever will retain a 20 per cent. stake, the intention is to sell that down to 0 in time.
For Unilever, this is about executing its refreshed strategy, as mentioned in our previous note on its sale of Graze, and its “plan to concentrate its Foods section on condiments, cooking aids and other packaged products” to ensure its portfolio remains relevant and revenue generating (Candy Kittens takes a bite as Unilever slims down).
For TMICC, independence creates a focused investment case. The company will now be solely focused on ice‑cream rather than group performance. More broadly, this fits a wider shift in consumer goods with focus on simpler portfolios. Expect more carve‑outs where separate listings can create value.
“Now, as an independent listed company, we will be more agile, more focused, and more ambitious than ever.”
