Unilever said yesterday that it has agreed to sell its North American laundry business, which includes Snuggle and Wisk, to private equity firm Vestar Capital Partners.
Vestar will merge the business with its existing operation, Huish Detergents Inc., to form a new company, The Sun Products Corp.
Unilever sold the business for $1.075 billion in cash along with preferred shares in The Sun Products Corp. a face value of $375 million, and warrants offering the opportunity to acquire up to 2.5% of the common equity of Sun Products.
The businesses to be sold include the all, Snuggle, Wisk, Surf and Sunlight fabric cleaning and fabric conditioning brands in the US, Canada and Puerto Rico, as well as Unilever’s manufacturing facility in Baltimore, MD.
Patrick Cescau, Unilever’s Group Chief Executive, said in a release: “We have reached a good deal for both Unilever shareholders and the business. It puts our North American laundry people and brands into a company which is focused on the laundry category and which, with its new combined portfolio, is well-positioned to become a strong player in their market.”
Laundry remains an important category for Unilever outside North America.
The U.S., Canada and Puerto Rico laundry business generated $1 billion in turnover for Unilever in 2007. The sale is part of Unilever’s previously announced plans to dispose of non-strategic brands.
The transaction, which is subject to regulatory approval, is expected to close in 2008.
Network
