Unilever Continues to Focus on Health - Analyst Blog

Consumer products giant Unilever NV UN has been focusing on shaping its portfolio to deliver sustainable growth. It aims to make products that improve health and well-being and do not harm the environment. With the announcement of the acquisition of a majority stake in the Qinyuan Group, a leading Chinese water purification business on Mar 9, the company has taken a step further in making safe drinking water available and affordable to people across the world.

Unilever acquired a majority stake in the Chinese water purifier maker for an undisclosed amount - making its biggest deal in China in more than 10 years. Unilever owns a global water purification business – Pureit (launched in 2005), which is available in several countries in South Asia, South East Asia, Latin America and Africa. The deal will allow Unilever to more than double the size of its current water purification business and also expand its business in China, where the water purification market has been growing rapidly. Unilever will also benefit from Qinyuan's strong foothold in the local market, its marketing platform, and its manufacturing and distribution facilities.

This deal is a strategic fit for both Pureit and Qinyuan, as their combination will offer a complete range of water purification products. Ye, the founder of the Qinyuan Group, will continue to be the CEO of the business.

Like Unilever, consumer goods giants Procter & Gamble Co PG also believes in sourcing and manufacturing its products sustainably in order to enhance the livelihood of its employees and reduce the environmental impact of its products.

Unilever currently holds a Zacks Rank #2 (Buy). Investors can also consider other food companies such as Diamond Foods Inc. DMND and The Hain Celestial Group, Inc. HAIN, which sport a Zacks Rank #2.