P&G to acquire Sara Lee’s air-care brands for $700 mn

ATLANTA: Procter & Gamble, the world’s largest consumer-goods company, agreed to buy Sara Lee’s air-care brands, including Ambi Pur, for about $700 million, according to a person with knowledge of the transaction.

Ambi Pur air freshener would help Procter & Gamble expand in Europe, Australia, Africa and some countries in Asia.

“Procter & Gamble has very much prioritised its air-care business, so adding new brands fits with that strategy,” Ali Dibadj, a New York-based analyst with Sanford C Bernstein, said. He rates the shares “market perform.”

Sara Lee has been shedding units to focus on coffee and food. The company said in March it was considering selling the household and body-care brands. Unilever NV agreed in September to buy the body-care and European detergent unit for $1.88 billion.

P&G gets most of its revenue from household items such as Pampers diapers, Ivory soap and Tide laundry detergent. It agreed to sell its prescription-drug unit to Warner Chilcott for $3.1 billion in August. The Cincinnati-based company said it would use the proceeds to develop new products and make acquisitions.

Sara Lee, based in Downers Grove, Illinois, rose six cents to $12.19 on Thursday in New York Stock Exchange composite trading. The shares have gained 25 per cent this year till Thursday.

Procter & Gamble was unchanged at $62.24. The shares have gained less than a per cent in 2009.