ROTTERDAM, Netherlands — As part of its plan to sell non-strategic brands, Unilever has signed a definitive agreement to sell Snuggle, All, Wisk and the rest of its North American laundry business to Vestar Capital Partners, a private equity firm. Vestar will merge the business with its existing operation, Huish Detergents, to form a new company called The Sun Products Corp. Along with its fabric cleaning and fabric conditioning brands in the U.S., Canada and Puerto Rico, the proposed sale includes Unilever’s manufacturing facility in Baltimore. Under the proposal, Unilever will get $1.075 billion in cash plus $375 million in preferred shares from Sun Products. “We have reached a good deal for both Unilever shareholders and the business,” Unilever’s Group Chief Executive Patrick Cescau said in a statement. “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.” Cescau said laundry remains an important category for Unilever outside North America. “This transaction will allow us to focus our resources on our leading positions in Europe, Asia, Africa and Latin America where we continue to drive for expanded leadership,” he said. The transaction, which is subject to regulatory approval, is expected to close this year.
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