Unilever scoops up Ben & Jerry's, gains Slim-Fast

Unilever PLC, the world's largest ice-cream maker, has gobbled up Ben & Jerry's and Slim-Fast in two deals announced Wednesday.

Ben & Jerry's Homemade, whose former hippie owners favour tie-dyed T-shirts, has sold out to the corporates suits of the multinational Unilever for $326 million US.

Unilever is a conglomerate that produces diverse products from Popsicles to Dove soap. It also owns Good Humour and Breyers ice cream. The deal now gives Ben & Jerry's the international distribution it had been seeking.

Ben and Jerry's has built a cult following with its quirky ice cream flavours ("Chunky Monkey" and "Cherry Garcia"), blended with a commitment to social principles. It gives 7.5 per cent of pre-tax profits to charity.

The two owners will continue to be involved in the firm, although it's not clear what their roles are, or if Ben & Jerry's social mission will change.

The deal calls for Unilever to pay $43.60 per share for the company. Stock in Ben & Jerry's shot up Wednesday by $8.12 US, closing at $43.06 US on Nasdaq, blasting through a previous 52-week high of $35.63 US.

Ben & Jerry's had sales of $237 million in 1999, while Unilever has sales of more than $45 billion.

On the opposite end of Ben & Jerry's "Chubby Hubby," Unilever bulked up by also buying SlimFast Foods Co. for $2.3 billion US cash.

Slim-Fast makes diet products and nutritional supplements. It's a privately-owned company based in Florida.