Tupperware Corp. plans to buy Sara Lee Corp.’s direct selling beauty and personal care business for $557 million in cash to extend its reach in Asia and Latin America.
The acquisition is expected to increase beauty and personal care products to 35% of Tupperware’s direct sales, up from 12%, and boost annual sales by about 38% to $1.8 billion, according to news reports.
Sara Lee direct sells in 18 countries. Its brands include Nutrimetics, Fuller and House of Sara Lee, generating $470 million in revenue with 90% coming from Latin America and Asia.
Analysts said the deal makes sense for Tupperware, based in Orlando, FL, to become less dependent on its plastic wares as disposable containers become more popular, the reports said.
Sara Lee has spun off some of its businesses to focus on its core bakery, meat and coffee brands. In February, the struggling consumer goods maker added $250 million to its marketing and R&D budgets as part of a turnaround plan.
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