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COLGATE PALMOLIVE CO 8-K Report, Material Agreement (Mar 25, 2011)

Filed March 25, 2011For Securities:CL

Summary

Colgate-Palmolive Company (CL) announced a significant strategic acquisition on March 23, 2011, by entering into a Business and Share Sale and Purchase Agreement to acquire the Sanex personal care brand from Unilever N.V. and Unilever PLC for approximately €672 million. This acquisition, expected to be financed with cash on hand, will expand Colgate's personal care portfolio in Europe. The transaction is subject to customary closing conditions, including European Commission approval and works council consultations in Europe. In conjunction with this acquisition, Colgate is also divesting its laundry detergent business in Colombia to Unilever for $215 million. This move signifies a strategic focus on core brands and geographic markets, shedding non-core assets while acquiring a key European personal care brand. Investors should monitor the regulatory approval process and the successful integration of the Sanex brand into Colgate's operations.

Key Highlights

  • 1Colgate-Palmolive entered into an agreement to acquire the Sanex personal care brand from Unilever for €672 million.
  • 2The acquisition is expected to be funded primarily through cash on hand.
  • 3The transaction is subject to approval from the European Commission and satisfaction of other customary conditions.
  • 4Colgate will also sell its laundry detergent business in Colombia to Unilever for $215 million.
  • 5The agreements include provisions for transitional services and supply of Sanex products for a limited period.
  • 6The Purchase Agreement has a termination date of three months if closing conditions are not met, with potential for extension.
  • 7The filing includes a press release dated March 23, 2011, detailing the acquisition.

Frequently Asked Questions

This 8-K filing announces Colgate-Palmolive Company's entry into a material definitive agreement to acquire the Sanex personal care brand from Unilever and its agreement to sell its laundry detergent business in Colombia to Unilever.

Colgate-Palmolive is acquiring the Sanex brand for an aggregate purchase price of €672,000,000, subject to adjustments. The company expects to fund this acquisition primarily with cash on hand.

Yes, the consummation of the Sanex acquisition is subject to the approval of the transaction by the European Commission and the satisfaction of certain customary matters relating to works councils in Europe.

Colgate-Palmolive is selling its laundry detergent business in Colombia to Unilever for $215,000,000. This sale is also subject to closing conditions, including regulatory approval and the prior consummation of the Sanex acquisition.