Unilever To Buy Sara Lee's Personal Care Unit For EUR1.28 Billion
September 25 2009 - 4:31AM
Dow Jones News
Anglo-Dutch consumer giant Unilever PLC (ULVR.LN) said Friday it
will buy Sara Lee Corp.'s (SLE) Personal Care business for EUR1.28
billion in cash to strengthen its operations in Western Europe and
Asia.
Unilever will add skin cleansing and deodorant brands such as
Sanex, Radox and Duschdas to its stable of products such as Dove,
Axe and Rexona. It also produces Ben & Jerry's ice cream, Dove
soap, Lipton teas and Hellmann's mayo.
Chief Executive Paul Polman said "the Sara Lee brands enjoy
strong consumer recognition, offer significant growth potential and
are an excellent fit with Unilever's existing business."
Unilever said there is "significant potential" to build the
newly acquired brands in developing and emerging markets.
The Sara Lee brands generated annual sales of more than EUR750
million and earnings before interest, tax, depreciation and
amortization of EUR128 million for the financial year to the end of
June, 2009.
The deal is subject to regulatory approval and consultation with
European employee works councils, Unilever said.
Sara Lee announced in April said it was exploring options for
its international household and body-care business, including a
possible sale, after receiving interest in the division. In August,
it said it was continuing to consider "all alternatives" for the
segment, including a divestiture. The company has been
restructuring since 2005, spinning off or selling slower-growth
businesses.
At 0749 GMT, Unilever shares were up 1 pence in London at 1737
pence in a higher overall market. The stock has gained 13% in value
over the past 12 months.
NYSE-listed Sara Lee Corp's shares ended 2.4% lower Thursday at
$10.54. The stock has lost 18.6% over the past 12 months.
Company Web site: www.unilever.com; www.saralee.com
-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290;
lilly.vitorovich@dowjones.com