Global food company Unilever has agreed to sell its spreads business to private investment firm KKR for €6.825bn on a cash-free, debt-free basis.

Completion of the deal is subject to certain regulatory approvals and employee consultations, which are expected to take place by mid 2018.

Unilever CEO Paul Polman said: “In April of this year we set out our 2020 programme to accelerate sustainable value creation. After a long history in Unilever we decided that the future of the spreads business would lie outside the group.

“The announcement today marks a further step in reshaping and sharpening our portfolio for long term growth. The consideration recognises the market leading brands and the improved momentum we have achieved.”

“Unilever intends to return the net cash realised to shareholders, unless more value-creating acquisition alternatives arise.”

Unilever intends to return the net cash realised to shareholders, unless more value-creating acquisition alternatives arise.

The acquisition will be funded by KKR’s European and North American private equity funds.

KKR’s Europe, the Middle East and Africa (EMEA) head Johannes Huth said: “The strength of the portfolio of consumer brands in spreads provides a firm foundation for future growth.

“We look forward to deploying our global network and operational expertise to support the business’s growth ambitions, while continuing to follow Unilever’s responsible sourcing policies, including working towards the goal of sourcing 100% sustainable palm oil by 2019.”