Unilever Sells North American Laundry Business
Unilever signs a definitive agreement to sell its North American laundry business in the United States, Canada and Puerto Rico to Vestar Capital Partners. Vestar Capital Partners is a global private equity firm and will merge the business with its existing operation, Huish Detergents Inc., to form a new company, The Sun Products Corporation.
Patrick Cescau, Unilever's Group chief executive, says, "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."
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 percent 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 United States, Canada and Puerto Rico, as well as Unilever's manufacturing facility in Baltimore, Md.
Patrick Cescau, Unilever's Group chief executive, says, "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."
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 percent 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 United States, Canada and Puerto Rico, as well as Unilever's manufacturing facility in Baltimore, Md.