Unilever has announced the signing of an agreement to sell its oral care brands in the United States and Canada to owners of the Arm & Hammer trademark Church & Dwight of Princeton, New Jersey.
The transaction is expected to be completed in the fourth quarter of 2003, subject to regulatory approvals. Unilever will receive $104 million in cash at closing, plus additional performance-based cash payments of between $5 million and $12 million.
The sale includes, for the US and Canada, the Mentadent brand of toothpaste and toothbrushes, Pepsodent and Aim toothpaste, and exclusive licensing rights to Close-Up toothpaste. Sales of the business for the first six months of 2003 were $61 million.
In a statement earlier this week Unilever cited the action as 'another milestone in its Path to Growth strategy', which includes paring down the number of brands in its portfolio regionally and globally, and focusing resources on the company's leading brands. As announced in the US last week, Unilever also reached an agreement to sell its Brut line of male personal care products in the Americas.
In a separate statement, Church & Dwight chairman and CEO, Robert A. Davies commented: "This transaction strengthens our strategically important oral care business, tripling our unit sales and more than doubling our dollar sales within the US oral care sector."
Davies added: "Although this business has recently been in decline, we believe the brand equities remain strong, and the business can be revitalised through additional focus and support."
Unilever is to remain fully committed to its oral care business outside the US and Canada.