How a century of mergers transformed a soap and margarine giant into a powerhouse
Unilever began in 1930 as a marriage between a Dutch margarine producer and a British soap maker. Over nearly a century, it evolved from an unwieldy conglomerate into a focused consumer goods giant, constantly shedding old divisions to chase the shifting tides of global health, beauty, and personal care.
Formed by the merger of Margarine Unie and Lever Brothers, Unilever spent its early decades as a diversified manufacturer of oils and fats. By the mid-1960s, these products still accounted for roughly half of the company's profits. However, as markets for yellow fats stagnated and competition in the detergent sector intensified, the company began a long-term pivot. In 1982, management committed to transforming the business into a concentrated fast-moving consumer goods company, setting the stage for decades of aggressive acquisitions and divestments.
The 2010s marked a definitive shift under Paul Polman, who steered the company away from slow-growth food brands to prioritize health and beauty. This strategic realignment saw the sale of major assets, including its margarine and spreads division to KKR for €6.8 billion in 2017 and the sale of its tea business, Ekaterra, to CVC Capital Partners for €4.5 billion in 2021. The company’s portfolio has been a revolving door of iconic names; it has owned and sold brands ranging from Calvin Klein Cosmetics to the mustard retailer Maille.
Today, Unilever’s evolution continues with a focus on streamlining operations. In 2024, the company announced a cost-savings program involving 7,500 job cuts and the spin-off of its ice cream unit, which includes brands like Ben & Jerry's and Magnum. This unit, branded as The Magnum Ice Cream Company, completed its demerger in November 2025. By shedding these legacy food categories, Unilever aims to sharpen its global presence in personal care, a strategy underscored by its 2025 acquisition of the American brand Dr. Squatch for $1.5 billion.
Source: Unilever
