Friday, Anglo-Dutch consumer giant Unilever Plc (UL,UN,ULVR.L) said it has made a binding offer to acquire the Personal Care business of US-based Sara Lee Corp. (SLE) in a cash deal worth 1.275 billion euros. While confirming that it received the offer from Unilever for its global body care and European detergents businesses, consumer products and packaged food company Sara Lee said it agreed to accept the offer upon satisfaction of certain conditions, where permissible. Sara Lee also said its board authorized a $1.0 billion share buyback.
The proposed transaction, which is subject to customary closing conditions and regulatory clearances and consultation with European employee works councils, is expected to close during calendar year 2010.
Sara Lee, which has been restructuring since 2005, spinning off or selling slower-growth businesses, with an aim to focus on its core food and beverage business, on March 30 said that it was reviewing strategic alternatives for its International Household & Body Care business, including a possible sale, after receiving interest in the division.
A previous report by the Wall Street Journal had noted that Sara Lee had hired Goldman Sachs Group Inc. (GS) to find out possible buyers for the business, which could fetch over $2 billion. As per the report, the prospective bidders included Unilever and cleaning products maker Reckitt Benckiser Plc (RB.L, RKBKF.PK) from Britain, while the possible bidders from the U.S. included Wisconsin-based cleaning products maker S.C. Johnson & Son Inc. and New York-based consumer products maker Colgate-Palmolive Co. (CL).
In August, Sara Lee reportedly said that 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.
Sara Lee now added that it has also received significant interest in the remainder of its household business and is continuing to pursue divestiture options for this business, including non-European cleaning brands. The business, which is not included in the proposed transaction, includes the Ambi Pur air care brand, Kiwi shoe care, Ridsect insecticides and White King bleach brands.
Brenda Barnes, chairman and chief executive officer, Sara Lee, stated, "The divestiture of body care and European detergents would advance our strategy to concentrate on our core food and beverage businesses where we enjoy a strong competitive position and where we can generate superior shareholder returns. We intend to use proceeds from the divestiture to invest for growth in our core businesses and to repurchase stock." Barnes added, "Receiving an offer from a leading company like Unilever reflects the high quality talent, strong consumer recognition of our leading brands, and the significant growth potential of these businesses."
Sara Lee's Utrecht, Netherlands-based International Household & Body Care business manufactures and markets household and personal care products in more than 150 countries in Europe, Asia Pacific, Africa and North America. It is a $2.3 billion business and employs about 8,000 people worldwide. The segment's Body Care products include Bath & shower, deodorants, baby care, men's toiletries and oral care brands like Sanex, Duschdas, Radox, Zwitsal, Brylcreem, Prodent and Zendium.
Sara Lee's International Household and Body Care business generated about 1.5 billion euros or $2.0 billion in sales in fiscal 2009, and the share of the revenue from its divesting business was in excess of 750 million euros or $1 billion in the year, with an EBITDA of 128 million euros.
Unilever noted that the proposed acquisition is projected to strengthen its leadership positions overall in Western Europe, and leading brands such as Sanex, Radox and Duschdas would strengthen category leadership in Skin Cleansing and Deodorants. The manufacturer of food, home care, and personal products added that there is significant potential to build these brands in developing and emerging markets, which already generate approximately 15% of their annual sales.
Commenting on the offer, Paul Polman, Chief Executive Officer of Unilever said, "Personal Care is a strategic category and a key growth driver for Unilever. This transaction builds on our portfolio in Western Europe and also in Asia. The Sara Lee brands enjoy strong consumer recognition, offer significant growth potential and are an excellent fit with Unilever's existing business."
Unilever, which has approximately 174,000 employees, and annual sales of 40 billion euros, achieve close to 50% of its total revenues in developing and emerging markets such as Asia, Africa, Latin America and Central and Eastern Europe.
Sara Lee has operations organized under six business segments: North American Retail Meats, North American Retail Bakery, Foodservice, International Beverage, International Bakery, and Household and Body Care.
While announcing the fourth quarter results on August 12, Sara Lee had said that it expected five out of six business segments to show an increase in adjusted operating segment income in fiscal 2010. The only exception to this is North American foodservice due to the continuing industry-wide pressure affecting most foodservice manufacturers and operators.
Sara Lee also announced now that its board of directors has authorized a $1.0 billion share buybak, in addition to the 13.5 million authorization, or about $150 million based on the recent market price, remaining under the previous share buyback program.
The company further said it intends to maintain the current quarterly dividend of $0.11 for the next four quarters, regardless of the timing of dispositions. Sara Lee also said it intends to maintain a credit profile consistent with a strong investment grade credit rating.
UL closed Thursday's regular trading session at $27.88, down $0.33, on a volume of 2.4 million shares, and UN settled at $28.34, down $0.08, on a volume of 2 million shares.
On the London Stock Exchange, ULVR.L is currently trading at 1,737.00 pence, up 1.00 pence or 0.06%, on a volume of 770 thousand shares.
SLE settled at $10.54 on Thursday, down $0.26, on a volume of 5.7 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.