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Unilever to buy Sundial Brands for undisclosed amount

Unilever Plc said Nov. 27 that it has agreed to buy New York-based hair and skin care company Sundial Brands LLC, expanding its reach into the personal care products sector.

The Anglo-Dutch consumer products giant declined to release financial terms for the transaction but said that deal is expected to close in the first quarter of 2018.

Unilever said the acquisition will help address "underserved needs of multicultural and millennial consumers" and will expand its personal care portfolio, which includes Axe body spray as well as Dove soap.

Amityville, N.Y.-based Sundial Brands, whose products include SheaMoisture and Nubian Heritage along with other beauty products, will operate as an independent unit within Unilever. Sundial's founder, Richelieu Dennis, will continue to manage the business as CEO and executive chairman.

Sundial's 2017 turnover is projected to be roughly $240 million, Unilever said.

"The Sundial team has built differentiated and on-trend premium brands serving multicultural and millennial consumers that enhance our existing portfolio," said Unilever North America President Kees Kruythoff. "Sundial is an important addition to our U.S. portfolio of purpose-driven companies."

Unilever, whose other U.S. companies include Ben & Jerry's and Seventh Generation, is rapidly expanding its American portfolio.

The Dutch-British food and drink, home care and personal care supplier on Nov. 2 agreed to purchase the Tazo tea brand from Starbucks Corp. for $384 million, joining its existing portfolio that also includes the Breyers and Dollar Shave Club brands. The company also launched a new natural hair care and skin cleansing line called ApotheCARE Essentials, CNBC reported Nov. 2.

Unilever also announced that it has appointed Esi Eggleston Bracey as executive vice president and COO of its Unilever North America Personal Care division, effective Jan. 1. Unilever said Bracey will work with Dennis to accelerate the growth of Sundial Brands as part of her new role.

As part of the Sundial deal, Unilever and Sundial are creating the New Voices Fund to empower women of color entrepreneurs. The companies announced an initial investment of $50 million with plans to scale the fund to $100 million with additional investments.