Anglo-Dutch consumer goods firm Unilever will sell its South African spreads business to South Africa-based investment holding company Remgro in exchange for acquiring Remgro’s 25.75% share in Unilever South Africa Holdings.

In addition to swapping businesses, Unilever agreed to pay Remgro ZAR4.9bn (US$369M) in cash, bringing the total transaction value to ZAR11.9bn (US$896M), Unilever said in a 22 September statement.

The transaction valued the spreads business at ZAR7.0bn (US$527M), which represented a 13.4 multiple of its 2016 EBITDA.

Luc-Olivier Marque, executive vice president at Unilever South Africa Holding, called the company a great business that was positioned for sustainable long-term growth.

“By giving us full ownership of the business, this transaction means we are better placed to accelerate that growth while the spreads business moves on to Remgro, where it augments their current portfolio and can be sure of a great future,” said Marquet.

Remgro CEO Jannie Durand believed Unilever’s spreads division – which includes the Rama, Stork, Flora and Rondo brands – was an attractive business opportunity.

“This transaction is a vote of confidence in the future of South Africa, Botswana, Lesotho, Namibia and Swaziland,” Durand said.

Unilever announced its plan to sell of its spreads unit in April as part of its business plan reshuffle.