Unilever Agrees to Sell North American Laundry Business to Vestar Capital Partners
28 Juli 2008 - 8:11AM
Business Wire
Unilever (NYSE: UL, UN) today announced that it has signed a
definitive agreement to sell its North American laundry business in
US, Canada and Puerto Rico to Vestar Capital Partners. Vestar
Capital Partners (Vestar) is a leading global private equity firm.
Vestar will merge the business with its existing operation, Huish
Detergents Inc., to form a new company, The Sun Products
Corporation (Sun Products). The consideration consists of a cash
payment of $1.075 billion, together with preferred shares in The
Sun Products Corporation with a face value of $375 million, and
warrants offering the opportunity to acquire up to 2.5% of the
common equity of The Sun Products Corporation. 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, USA. Patrick Cescau, Unilever�s Group Chief
Executive, said: �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.
This transaction will allow us to focus our resources on our
leading positions in Europe, Asia, Africa and Latin America where
we continue to drive for expanded leadership.� Both Unilever and
Vestar will seek to ensure a seamless transition of the business
for retail customers throughout US, Canada and Puerto Rico. The US,
Canada and Puerto Rico laundry business generated $1.0 billion in
turnover for Unilever in 2007. The sale is part of Unilever�s
previously announced plans to dispose of non-strategic brands with
collectively more than �2 billion in turnover. The transaction,
which is subject to regulatory approval, is expected to close in
2008. Notes to editors: Major Unilever laundry brands outside North
America include Omo, Persil, Ala, Skip, Radiant, Coral, Robijn,
Comfort, Rin, Wheel and Surf. Unilever Safe Harbour: This
announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United
States Private Securities Litigation Reform Act of 1995. Words such
as 'expects', 'anticipates', 'intends' or the negative of these
terms and other similar expressions of future performance or
results, including financial objectives to 2010, and their
negatives are intended to identify such forward-looking statements.
These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and
other factors affecting the Group. They are not historical facts,
nor are they guarantees of future performance. Because these
forward-looking statements involve risks and uncertainties, there
are important factors that could cause actual results to differ
materially from those expressed or implied by these forward-looking
statements, including, among others, competitive pricing and
activities, consumption levels, costs, the ability to maintain and
manage key customer relationships and supply chain sources,
currency values, interest rates, the ability to integrate
acquisitions and complete planned divestitures, the ability to
complete planned restructuring activities, physical risks,
environmental risks, the ability to manage regulatory, tax and
legal matters and resolve pending matters within current estimates,
legislative, fiscal and regulatory developments, political,
economic and social conditions in the geographic markets where the
Group operates and new or changed priorities of the Boards. Further
details of potential risks and uncertainties affecting the Group
are described in the Group's filings with the London Stock
Exchange, Euronext Amsterdam and the US Securities and Exchange
Commission, including the Annual Report & Accounts on Form
20-F. These forward-looking statements speak only as of the date of
this announcement. Except as required by any applicable law or
regulation, the Group expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Group's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based. About Unilever Unilever�s mission is to add vitality to
life. We meet everyday needs for nutrition, hygiene and personal
care with brands that help people feel good, look good and get more
out of life. Unilever is one of the world�s leading suppliers of
fast moving consumer goods with strong local roots in more than 100
countries across the globe. Its portfolio includes some of the
world�s best known and most loved brands including twelve �1
billion brands and global leadership in many categories in which
the company operates. The portfolio features brand icons such as
Knorr, Lipton, Hellmann�s, Flora, Breyer�s, Dove, Lux, Pond�s,
Degree, Axe, Suave, Sunsilk, Persil, Cif and Domestos. Unilever has
around 174,000 employees in approaching 100 countries and generated
annual sales of over �40 billion in 2007. For more information
about Unilever and its brands, please visit www.unilever.com. About
Vestar Capital Partners Vestar Capital Partners is a leading global
private equity firm with $7 billion in assets under management. The
firm focuses on companies in the U.S., Europe and Japan with
valuations of $100 million to $5 billion and operations in five key
industry sectors: consumer/services, diversified industries,
healthcare, media/communication, and financial services. Since the
firm�s founding in 1988, the Vestar funds have completed 65
investments in companies with a total value of more than $20
billion. For more information, please visit www.vestarcapital.com.
About Huish Huish Detergents has been producing private label
laundry detergent and household cleaners since 1976. Today, the
company is the largest manufacturer of private label laundry
detergents and fabric softener in North America. In addition, the
company produces the Sun line of branded detergent products. Huish
Detergents focuses on high efficiency, low cost and high quality in
the manufacture of all of its laundry products. For more
information, go to www.huish.com.
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