PE firms not welcome in Sara Lee unit auction-NY Post

NEW YORK, June 16 (Reuters) - Private equity firms Blackstone Group (BX.N) and Kohlberg Kravis Roberts are being blocked from buying Sara Lee Corp's (SLE.N) household and personal-care business, the New York Post reported on Tuesday.

Investment bank Goldman Sachs (GS.N), which is fielding offers for the unit, is blocking them from participating in the process, the paper reported, citing two people close to the process.

Both firms had expressed an interest in buying the division, whose products include 100 brands such as Kiwi shoe polish, Brylcreem hair products and Ambi Pur air freshener, the paper said.

But it cited sources saying the company, through its bankers, has told potential suitors that they must bid for the entire operation and they cannot partner with private-equity firms to complete a transaction.

At this stage, the division, which the company hopes will fetch more than $3 billion, has attracted interest from Colgate-Palmolive (CL.N), Clorox (CLX.N) and SC Johnson, the Post said.

However, one source said those suitors were only interested in pieces of the unit, and may not step up with an offer unless they can do so with a partner, such as a deep-pocketed private-equity firm, the paper said.

Goldman Sachs, Blackstone, KKR and Sara Lee were not immediately available for comment. (Editing by Maureen Bavdek)