Procter & Gamble Co. has agreed to buy Sara Lee Corp.'s European air-freshener business for €320 million ($470 million).
The price tag is less than what had been discussed recently. Some had previously told reporters that the business could fetch up to $700 million.
For the fiscal year ended in June, Ambi Pur had sales of about €260 million. The unit's portfolio includes plug-in and stand-by air fresheners, aerosol spray and toilet-cleaning products.
Sara Lee said Friday the deal helps the company focus on its core food and beverage businesses, "where we have a strong competitive position and can generate superior shareholder returns," said Chairman and Chief Executive Brenda C. Barnes. The company is currently trying to divest from its household and body-care businesses. It also said it's receiving "strong interest" in the remainder of its household business.
P&G said the deal, which shouldn't have a material impact on the company's results this year, helps it extend its reach globally. Ambi Pur has a presence in more than 80 countries, and the acquired toilet-care products have a "strong presence in Western Europe and Asia."
The deal is expected to close by midyear. Among the other reported suitors for the business was privately held S.C. S.C. Johnson & Son Inc., maker of cleaning products ranging from Glade air fresheners to Windex.
In October, P&G said its fiscal first-quarter earnings fell 1%, but the company raised its full-year projections, signaling its efforts to boost sales might be paying off.
Meanwhile, Sara Lee in November said its first-quarter earnings jumped more than 20% as the company saw lower costs.
Shares of P&G rose 16 cents to $62.40 in recent trading, and Sara Lee stock was up 3 cents to $12.22.
The Wall Street Journal has contributed to the report.
Subscribe to Pravda.Ru Telegram channel, Facebook, Twitter, YouTube, RSS!
The Russian Defense Ministry showed the destruction of foreign armoured vehicles including Leopard tanks in Ukraine