Unilever to Buy U.K. Beauty Company REN

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 [e-mail]

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