Sara Lee is understood to have asked Goldman Sachs to look for possible buyers for its household goods arm, which includes brands like Kiwi shoe polish and Radox bubble bath. But analysts say it's
facing a tough sell, Jenny Wiggins reports, with private-label products gaining traction at retail. "It's a rather tired portfolio," observes an executive at one household goods company.
Sales for the business, most of which are generated in Europe, dropped 3.2% in the second quarter last year as demand for its air fresheners, body care and shoe care products fell. The company is
trying to counter competition from private labels by expanding distribution at discounters and convenience stores.
Unilever is unlikely to be a buyer, given its acquisition strategy of
focusing on strong, niche brands, as is Reckitt Benckiser, which is keying on emerging categories. One possible buyer is SC Johnson. The business might also appeal to some private equity firms,
although it remains difficult for many to raise money.
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