03.23.11
Unilever is selling its global Sanex business to Colgate-Palmolive for approximately $940 million, the company announced this morning. In addition, the UK-based consumer products giant has entered into a binding agreement to acquire Colgate's laundry detergent brands in Colombia for $215 million.
Both transactions include the trademarks, intellectual property and formulations, but do not include any manufacturing facilities.
"x4 sales, just to add more low margin personal wash & deodorant business in Europe, seems a high price to pay," said Colin Hession, managing director of specialist consultants, Colin Hession Consulting. "What Colgate needs is surely some higher margin, upper-mass lines, to avoid for ever slogging it out in promotional battles on budget lines - some decent skincare products to compete with Olay, for example."
The European Commission’s had required that Unilever divest the Sanex brand in the European Economic Area (EEA).Sanex is a multi-category personal care brand with 2010 net sales of approximately $260 million, primarily in Western Europe. Liquid body cleansing and deodorants each represent nearly 50% of the business.
“We are pleased to be divesting Sanex in what we consider to be a very attractive deal for Unilever,” said Michael Polk, Unilever’s President Categories. “At the same time, we are delighted to be adding the Fab, Lavomatic and Vel brands to our portfolio in Colombia. This acquisition will significantly enhance our position in one of the larger detergents markets in Latin America, bringing critical mass to our Colombian business, enhancing our laundry portfolio in the region and further increasing our presence in the fast-growing emerging markets.”
According to Polk, Unilever's “focus is on bolt-on acquisitions that can strengthen our existing portfolio and geographic presence, and help Unilever move closer to achieving our overall ambition of doubling the size of the business. The brands acquired from Sara Lee fill gaps in our current personal care portfolio in Western Europe, the business acquired from Colgate-Palmolive in Colombia will enable us to strengthen our competitive position in laundry in an important region.”
"Sanex is a very strong brand that we have admired for a long time. We are delighted that this acquisition will strengthen Colgate's positions in the shower gel and deodorant categories in several key countries in Europe and our overall personal care business in that region,” said Ian Cook, Colgate's chairman, president and CEO. "Sanex's unique positioning around skin health is a terrific complement to Palmolive's natural extracts and skin care positioning, as well as to our Protex brand which focuses on antibacterial protection for skin."
According to Cook, the Sanex acquisition and the divestment of its detergent business in Colombia are both “consistent with Colgate's ongoing strategy to de-emphasize non-core portions of our portfolio while focusing on our high-margin, strategically important oral care, personal care and pet nutrition businesses."
The Sanex purchase, which is structured as an all cash acquisition for shares and net assets, is currently expected to occur by the end of the second quarter of this year.The detergent sale is subject to closing conditions, including regulatory approval in Colombia and the prior closing of the Sanex acquisition, according to the companies.
Both transactions include the trademarks, intellectual property and formulations, but do not include any manufacturing facilities.
"x4 sales, just to add more low margin personal wash & deodorant business in Europe, seems a high price to pay," said Colin Hession, managing director of specialist consultants, Colin Hession Consulting. "What Colgate needs is surely some higher margin, upper-mass lines, to avoid for ever slogging it out in promotional battles on budget lines - some decent skincare products to compete with Olay, for example."
The European Commission’s had required that Unilever divest the Sanex brand in the European Economic Area (EEA).Sanex is a multi-category personal care brand with 2010 net sales of approximately $260 million, primarily in Western Europe. Liquid body cleansing and deodorants each represent nearly 50% of the business.
“We are pleased to be divesting Sanex in what we consider to be a very attractive deal for Unilever,” said Michael Polk, Unilever’s President Categories. “At the same time, we are delighted to be adding the Fab, Lavomatic and Vel brands to our portfolio in Colombia. This acquisition will significantly enhance our position in one of the larger detergents markets in Latin America, bringing critical mass to our Colombian business, enhancing our laundry portfolio in the region and further increasing our presence in the fast-growing emerging markets.”
According to Polk, Unilever's “focus is on bolt-on acquisitions that can strengthen our existing portfolio and geographic presence, and help Unilever move closer to achieving our overall ambition of doubling the size of the business. The brands acquired from Sara Lee fill gaps in our current personal care portfolio in Western Europe, the business acquired from Colgate-Palmolive in Colombia will enable us to strengthen our competitive position in laundry in an important region.”
"Sanex is a very strong brand that we have admired for a long time. We are delighted that this acquisition will strengthen Colgate's positions in the shower gel and deodorant categories in several key countries in Europe and our overall personal care business in that region,” said Ian Cook, Colgate's chairman, president and CEO. "Sanex's unique positioning around skin health is a terrific complement to Palmolive's natural extracts and skin care positioning, as well as to our Protex brand which focuses on antibacterial protection for skin."
According to Cook, the Sanex acquisition and the divestment of its detergent business in Colombia are both “consistent with Colgate's ongoing strategy to de-emphasize non-core portions of our portfolio while focusing on our high-margin, strategically important oral care, personal care and pet nutrition businesses."
The Sanex purchase, which is structured as an all cash acquisition for shares and net assets, is currently expected to occur by the end of the second quarter of this year.The detergent sale is subject to closing conditions, including regulatory approval in Colombia and the prior closing of the Sanex acquisition, according to the companies.