Unilever Said to Weigh Sale of Water Purification Unit Truliva in China

(Bloomberg) -- Unilever Plc is considering selling its majority stake in Qinyuan Group Co., a Chinese maker of water purification equipment that it acquired for an undisclosed sum in 2014, according to people familiar with the situation.

London-headquartered Unilever is working with an adviser to gauge interest from potential buyers, the people said, asking not to be identified discussing a private matter. A sale could value Qinyuan at about $300 million, they said. 

A representative for Unilever declined to comment. 

Founded in 1998, Qinyuan makes water purification products under the Truliva brand. The acquisition of the Ningbo-based company was Unilever’s biggest in China for more than 10 years and helped double the size of its water purification business in the country, it said at the time. 

Unilever, which also owns water and air purification brands Pureit and Blueair, is considering the Qinyuan sale as other companies also reassess their exposure to China due to a range of uncertainties, from geopolitical tensions and trade barriers to regulatory challenges and sluggish economic growth in the country.  

The consumer goods conglomerate has just announced plans to separate its ice-cream division as new Chief Executive Officer Hein Schumacher seeks to reverse years of lackluster performance. Shedding the unit that includes Ben & Jerry’s is part of a wider plan to drive growth, boost profits and unpick a legacy of overexpansion, missed opportunities and failed mergers and acquisitions.

(Updates with background details on Unilever in last paragraph.)

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