Unilever to sell North American detergents business to Vestar for $1.45 billion

29 July 2008

Anglo-Dutch consumer products group Unilever will sell its North American detergents business, including the All and Wisk brands, for $1.45 billion in cash and stock to private equity firm Vestar Capital Partners.

Vestar will pay $1.08 billion in cash and $375 million in shares in a new venture to be set up, Unilever said in a statement. Vestar will merge the business with its Huish Detergents Inc and form a new unit called Sun Products Corporation.

Under the deal Unilever will sell the Surf, Snuggle, Wisk and Sunlight fabric cleaning and conditioning brands in the US, Canada and Puerto Rico, as well as Unilever's manufacturing facility in Baltimore, US.

Vestar will merge the business with its existing operation, Huish Detergents, to form a new company, The Sun Products Corporation. The new company will move to No 2 from third in the North American market and gain scale needed to compete against Tide-maker P&G.

Unilever, the world's second-biggest consumer-products company, said it will instead focus on faster-growing businesses. But said it will continue to sell detergents outside North America.

Unilever's North American detergents business generated $1 billion of revenue last year. Last week, the company agreed to sell its Bertolli oil and vinegar businesses to  olive-oil maker Sos Cuetara SA for 630 million euros.