Colgate-Palmolive (NYSE:CL) has inked a deal to buy the Sanex brand from London's Unilever Plc (NYSE:UL) for $940 million in cash as part of its effort to built up its more profitable personal care business.
Sanex, located primarily in Europe, is a premium-priced personal-care brand focused on skin products. The unit, which is split between liquid body cleansing and deodorants, scored sales of $260 million last year.
“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,” Colgate CEO Ian Cook said in a statement. “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.”
In connection with the deal, Colgate has agreed to sell its laundry detergent business in Colombia to Unilever for $215 million.
Both acquisitions are subject to certain adjustments, regulatory approvals and customary closing conditions. The Sanex deal is slated to close by the end of the second-quarter. The detergent sale will follow.