Procter & Gamble may be eyeing Sara Lee unit

Procter & Gamble wants to buy Sara Lee household products unit

• On 4:52 pm EDT, Thursday October 22, 2009

NEW YORK (AP) -- Procter & Gamble is interested in buying part of Sara Lee Corp's household products unit, according to a published report.

The Wall Street Journal, citing people familiar with the matter that it did not name, reported that Procter & Gamble, the maker of products like Crest toothpaste and Febreze odor remover, wants to buy Sara Lee's air freshener business.

The business includes the Ambi Pur brand, which had roughly $470 million in sales last year and could fetch as much as $700 million, according to the report.

The acquisition would strengthen Proctor & Gamble's presence in European markets and add growth product to its lineup.

Proctor & Gamble has stayed active in adjusting its broad consumer products line over the past year, selling off its prescription drugs, Folgers coffee and some smaller businesses while buying the upscale skin-care line Zirh and men's grooming business The Art of Shaving.

"We continue to look at our portfolio, but we're not going to comment on rumor or speculation," P&G spokesman Paul Fox said Thursday.

Sara Lee did not return calls for comment Thursday.

Sara Lee announced last month that it has received "significant interest" in selling its household products unit and is pursuing sales options. But there doesn't appear to be any deal on the horizon to sell the entire unit, which also includes insecticide and shoe polish products.

Sara Lee is trying to shed some of its businesses, to focus on its core food and beverage products. Last month, the company announced it was selling its European health and beauty business, which included its Sanex and Radox brands, to Unilever NV for about $1.9 billion.

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