Unilever agrees deal to add Sara Lee brands

Consumer goods giant Unilever today unveiled a deal worth €1.2bn to add the bath products Sanex and Radox to its portfolio of brands.

Unilever already owns Dove soap and said the personal care business of Sara Lee Corporation represented the “perfect complement”.

US-based Sara Lee has agreed to accept the offer, which is subject to regulatory approval and consultations with works councils.

The brands involved in today’s deal generated sales in excess of €750m and underlying earnings of €128m in the year to June 30.

As well as a strong position in western Europe, Anglo-Dutch firm Unilever said there was “significant potential” to build the brands in developing and emerging markets, where around 15% of sales are currently achieved.

Unilever chief executive Paul Polman said: “Personal care is a strategic category and a key growth driver for Unilever.

“The Sara Lee brands enjoy strong consumer recognition, offer significant growth potential and are an excellent fit with Unilever’s existing business.”

Unilever’s other brands include Knorr, Hellmann’s and Flora, while Sara Lee has food, beverage and household brands including Ambi Pur and Douwe Egberts.