Unilever’s acquisition of the Personal Care and European Laundry business of the Sara Lee Corporation is expected to move to Phase II of the European Commission’s approval process.
The Phase II process will involve a detailed analysis of the impact of the acquisition, market by market.
Under the terms of the €1.275bn offer, Unilever will acquire a portfolio of more than 90 brands, across a number of different categories in 19 European countries. It has become clear from Phase I that the Commission needed more time to determine the full implications of the deal from a competition perspective on particular European markets.
Unilever welcomes the opportunity to engage more fully with the Commission’s competition authorities. Unilever believes the process will balance the legitimate interest of the Commission with the company’s desire to maximise the opportunities from an acquisition that will deliver more value to consumers, customers and investors.
The deal is on track to be completed in Q4 2010. The Sara Lee personal care and European laundry brands are maintaining strong levels of growth and Unilever continues to believe the deal will play a significant role in accelerating its growth in Western Europe.
About the acquisition
Unilever will pay €1.275 billion in cash for the Sara Lee Personal Care and European Laundry business. The deal will include leading brands such as Sanex, Radox and Duschdas. The Sara Lee brands which will be acquired generated annual sales in excess of €750 million for the year ending June 2009. The acquired brands currently represent 15% of turnover in developing and emerging markets.
In addition to brands such Sanex, Radox and Duschdas, Unilever will also acquire well-established and trusted brands in the Oral Care, Baby Care and Laundry categories. Brands will include Monsavon (Skin Cleansing), Prodent and Zendium (Oral Care), Zwitsal and Fissan (Baby Care) and Biotex and Neutral (Laundry).
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