Exclusive | Unilever, Colgate-Palmolive ‘consider bidding for Chinese consumer-product company for up to US$1 billion’
- Citigroup, sources say, is advising on the possible sale of Weimeizi as mega cross-border deals slow
- Global conglomerates continue to see China as a key market despite trade-war tensions
Global consumer conglomerates including Colgate-Palmolive, Unilever and Church & Dwight are considering bidding for the Chinese consumer-product company Weimeizi in an effort to increase their presence in the world’s largest market for consumer products, according to sources with knowledge of the matter.
Weimeizi, based in Guangzhou, China, makes high-end dental speciality products including toothpaste and toothbrushes under the Saky brand. Saky had sales of about US$3 billion in 2015, according to the Weimeizi website.
The company has hired Citigroup to sell the business for up to US$1 billion, according to the sources, who asked not to be named because they are not authorised to speak publicly about the sale. They said that BDA Partners, a New York-based investment bank, is advising one of the potential buyers.
Weimeizi, which was founded in 2006, is backed by venture capital firms including Hong Kong-based Orchid Asia and Shanghai-based Eastern Bell.
Representatives of Colgate-Palmolive, Citigroup and Orchid Asia declined to comment. The other firms did not respond to requests for comment.
