*Sara Lee Corp *has agreed to sell its stake in *Godrej Sara Lee *to *Godrej Consumer Products Ltd.* for Rs.1105 crore ($234mn).
The transaction is expected to be closed before July 3, 2010. Sara Lee held 51% in the JV while GCPL holds the rest. The deal values the company at 15 times earnings. Post this transaction GCPL will become the largest Indian-origin FMCG company in India. *HSBC *advised GCPL on the transaction. Transaction Note Godrej has been trying to buyout Sara Lee’s stake in the JV for more than a year. Sara Lee is selling the stake as it is exiting all businesses to focus on food and beverage business. It has already sold its air care business (Ambi Pure) to *P&G *and body and personal care business to *Unilever * worldwide. The JV holds rights to market all the existing brands in India, including the ones now owned by P&G and Unilever worldwide. Sara Lee is now trying to sell remainder of the Household care business, which includes shoe care, non-Indian insecticides and certain non-European cleaning brands. Godrej is interested in buying these businesses worldwide. Godrej is in talks with PE funds to partly finance this acquisition. It is planning to raise a total of Rs.3000 crore through debt and equity. Godrej has also acquired personal care company Tura in Negeria and Megasari Makmur in Indonesia recently. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
