Colombian local counsel to Unilever Andina Colombia Ltda., in the closing of the previously announced sale of its factory located in Cali in favor of Upfield Colombia S.A.S., a local subsidiary of the multinational Upfield, a major producer of spread and margarines.

The original asset purchase agreement executed in November 2021 governed the sale of the facilities, transfer of a group of employees assigned to the spreads production, transfer of contracts, applicable permits and other equipment. Conditions precedent were completed, inspection of the purchased assets was carried out satisfactorily and the execution of a purchase public deed took place on October 31st, 2022. The purchase deed contained the sale of all the purchased assets.

Unilever operated at the Cali facility for over 25 years producing food products such as food dressings, sauces, spreads, margarines, and flour derived products. Likewise, for over 4 years Unilever produced certain products for Upfield at the Cali plant (maquila).

Due to recent business restructures, Unilever will concentrate its operation in the production of beauty and wellbeing products and food dressings/sauces exclusively. In other words, this transaction represents the effective sale of Unilever’s spreads and margarine business in Colombia (and therefore in other Latam countries).

With this sale, Unilever completely moves its Colombian operation to a new state of the art facility in the neighboring municipality of Palmira. On the other hand, the purchase allows Upfield to operate a plant in Colombia (which in turn is the first factory they will own in Latin America) and begin a direct production of its spreads, margarines and other food products.

• Value: 58.737.605.640 COP
• Announcement date: November 17, 2021
• Closing date: October 31, 2022

Legal Advisors

Counsel to Unilever Andina Colombia Ltda.

Inhouse Counsel

Posse Herrera Ruiz

Counsel to Upfield Colombia S.A.S.

Inhouse Counsel

Dentons Cárdenas & Cárdenas