Consumer goods giant Unilever today agreed to pay €1.275 billion for the personal care business of Sara Lee bringing it brands such as Sanex and Radox.
The Anglo-Dutch group which already owns brands such as Dove, Lux and Sunsilk said the deal will strengthen its category leadership in areas such as skin cleansing and deodorants.
"The Sara Lee brands enjoy strong consumer recognition, offer significant growth potential and are an excellent fit with Unilever's existing business," said Unilever's Chief Executive Paul Polman in a statement.
The deal marks the first big acquisition for Polman since he took over as Chief Executive at the start of this year, and in nearly nine months he has already been credited by analysts as reviving the overall performance of the group.
Unilever Plc shares were up 0.5 per cent at £17.44 by 0810 GMT in a largely flat UK stock market.
Sara Lee put its household and personal care business up for sale earlier this year to focus on its food and drink operations, and was expected to break up the wide-ranging business to make a sell-off easier.
With the personal care business agreed to be sold, the U.S. group still has its household business which includes Kiwi shoe polish, Ambi Pur air fresheners and Vapona insecticides which it had hoped to sell.
The Sara Lee brands being acquired by Unilever generated annual sales in excess of €750 million with underlying operating profit, or EBITDA, of €128 million for the year ending June 2009.
Reuters