The US-based consumer goods maker Sara Lee today said it has exited from its Indian joint venture by selling 51 per cent stake to its partner Godrej Consumer Products for $230 million (Rs 1,100 crore).
"The transaction is part of Sara Lee’s strategy to sell its international household and body care segment," Sara Lee said in a statement.
Godrej Sara Lee is a 15-year-old joint venture between the Indian FMCG major Godrej and Sara Lee. It primarily markets insecticides, including mosquito repellent brand Good Knight, Hit, air freshener Ambi Pur and shoe polish Kiwi in India.
According to industry experts, the stake sell by Sara Lee is a part of its strategy to focus on its core food and beverage businesses.
Under this strategy, the company is selling off its international household and body care businesses.
The company said it anticipates the closing of sale of its global body care and European detergents businesses to Unilever by the end of 2010.
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The company is also expected to complete the closing of sale of its air care business to 'The Procter & Gamble Company' shortly after the end of the fiscal year in July.
Both transactions are subject to customary closing conditions, the company said.
In fiscal 2009, the Godrej Sara Lee joint venture generated annual sales of approximately 158 million dollars and accounted for about 9 per cent of the adjusted operating segment income for Sara Lee's International Household and Body Care business.