By Peter Evans
LONDON-- Unilever PLC said on Monday it would buy U.K. beauty
company REN Ltd. for an undisclosed fee, furthering its shift away
from food and into personal-care products.
Unilever said the deal would close in May, subject to regulatory
approval. REN's skin-care products are sold in 50 countries,
including the U.S., often at premium prices.
Unilever has in recent years moved its focus away from food
brands in favor of beauty and personal-care products, which often
carry higher margins and sell better in emerging economies. In
December, the company said it would separate its struggling spreads
division into a stand-alone company, a move seen by many analysts
as a first step toward selling the business.
In developed countries, Unilever is attempting to premiumize its
personal-care range in a bid to steal share from market leaders
L'Oréal SA and Procter & Gamble Co. Last year the company
created a prestige division, which sells high-end cosmetics and $15
tubes of toothpaste. REN's most expensive skin-care products sell
at more than $50 for 30 milliliters.
The move to buy REN is likely to please investors, who have long
pushed Unilever Chief Executive Paul Polman to expand further into
personal care.
Last week, a survey of 100 top Unilever shareholders by
Bernstein Research showed that the majority of investors polled
were "surprised" at the company's lack of acquisition activity.
Unilever's last major deal was to buy U.S. hair-care firm Alberto
Culver Co. for $3.7 billion in 2011.
Write to Peter Evans at peter.evans@wsj.com
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