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Sara Lee , ready to sell another Unit now as it continues its strategy

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September 25, 2009 – Comments (0) | RELATED TICKERS: HSH

of getting down to core operations and buying back $1 Billion of stock.

Sara Lee will now look to sell its household goods business separately as it launched a $1 billion share buyback programme.

The deal marks the first major acquisition for Unilever's new Chief Executive Paul Polman, while Sara Lee's CEO Brenda Barnes is now half-way through a planned sell-off of non-core business aimed at focusing the U.S. group on food and drink.

'The Sara Lee brands enjoy strong consumer recognition, offer significant growth potential and are an excellent fit with Unilever's existing business,' said Polman in a statement.

Unilever says Sanex, Radox and also Duschdas brands will complement its Dove, Axe and Rexona at slightly lower prices and strengthen its European business in key markets such as Britain, the Netherlands, Germany, France, Spain, Italy and Denmark.

Sara Lee said the brands sold accounted for 55 percent of the profits from its businesses up for sale, and added it had seen significant interest in its household brands including Ambi Pur air fresheners, Kiwi shoe polish, Vapona insecticides and its non-European cleaning brands.

'We intend to use proceeds from the divestiture to invest for growth in our core business and to repurchase stock,' Barnes said in a Sara Lee statement.

 

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