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AEA sells Burt's Bees to Clorox for $925m30/11/2007. Source: AltAssets. 
 US buy-out firm AEA Investors is to exit its investment in natural personal care product company Burt's Bees. The Clorox Company will acquire 100 per cent of the company for $925m.
Burt's Bees manufactures about 150 products in categories including lip care, face care and hair care. The products are sold in retail outlets, including major grocery and drug store chains in the US, the UK, Ireland, Canada, Hong Kong and Taiwan. AEA invested in Burt's Bees in November 2003, acquiring 80 per cent of the company from founder Roxanne Quimby, for a reported $179m.
Clorox will acquire 100 per cent of Burt's Bees for $925m, with an additional $25m payment for anticipated tax benefits. Clorox will fund the all-cash transaction through a combination of cash and short-term borrowings.
The deal is expected to be completed by the end of 2007, according to a statement.
Donald R Knauss, chairman and CEO of Clorox, said, 'The Burt's Bees brand is well-anchored in sustainability and health and wellness, and we believe it will benefit from natural and 'green' tailwinds. It's in an economically attractive category with a margin structure that will be highly accretive to Clorox.'
'Combined with our new Green Works line of natural cleaning products, and Brita water-filtration products, we can leverage Burt's Bees' extensive capabilities and credibility to build a robust, higher-growth platform for Clorox,' he added.
AEA was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co.
Copyright © 2007 AltAssets
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