LONDON — Unilever, the owner of Ben & Jerry’s, says it will spin off its ice cream business as part of a plan to reduce costs and boost profits while creating a giant $8 billion ice cream company.

International consumer goods company Unilever will separate off its ice cream brands such as Ben & Jerry's and Popsicle into a new company.

Unilever (NYSE: UL) has axed a plan to sell its €15bn ice-cream business to private equity and will focus on a spin-off of the unit. Unilever ADRs fell almost 1%.

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Unilever said it's spinning off iconic ice cream brand Ben & Jerry's to focus on its other businesses.

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Unilever has been in the midst of a major turnaround plan, which involves 7,500 previously announced job cuts and simplifying its business, including offloading the ice cream division.

Wells Enterprises, which is building a new $425 million ice cream plant in Dunkirk, plans to have a chocolate production facility and two new production lines up and running by the end of 2025.

Separating the ice cream division from the rest of Unilever is part of a broader initiative, dubbed the Growth Action Plan or GAP, to turnaround the larger company’s performance.