Unilever sells American laundry division
Consumer goods group Unilever said that it agreed to sell its North American laundry business to Vestar Capital Partners, the private equity firm, for around $1.45 billion.
HSBC poised to sell French branchesUnilever said that Vestar would merge the business with its Huish Detergents Inc to form The Sun Products Corp.
In the deal Unilever will get $1.075 billion in cash, preferred shares in The Sun Products Corp worth $375 million and the opportunity to buy as much as 2.5 per cent of the common equity of The Sun Products Corp.
Patrick Cescau, Group Chief Executive of Unilever, 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."
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