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Retail

Procter & Gamble sells soap brands to Unilever

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
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By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
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December 22, 2014, 1:29 PM ET
Unilever CEO Paul Polman Attends Opening Of The Unilever Leadership Development Centre
Paul Polman, chief executive officer of Unilever Plc, speaks at the opening of Four Acres, the company's first leadership development center outside the U.K., in Singapore, on Friday, June 28, 2013. Unilever sees a larger share of revenue coming form emerging markets. Photographer: Munshi Ahmed/Bloomberg via Getty ImagesPhotograph by Munshi Ahmed — Bloomberg/Getty Images
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Procter & Gamble (PG) has agreed to sell some of its soap brands to Unilever, the latest move by the consumer-products giant to slim down its product slate.

Unilever is buying all of Camay, and the Zest brand outside of the North America and Caribbean markets. The Anglo-Dutch company is also buying a manufacturing facility in Mexico that employs about 170 people. Terms of the deal, which is expected to close in the first half of next year, were not disclosed.

P&G in August unveiled plans to shed up to 100 brands, as the company aims to focus on 70 to 80 brands that are responsible for a vast majority of sales and profit. P&G said the other businesses would either be discontinued, or divested. Camay — and most of Zest — now join Duracell to make up the growing list of assets P&G is casting aside.

Unilever said the brands generated about $225 million in revenue in the latest fiscal year. The company added that the brands would benefit from Unilever’s “innovation and R&D capabilities.”

“They will make us one of the market leaders in skin cleansing in Mexico, a priority market for Unilever,” said Alan Jope, president of Unilever’s personal care unit.

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

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