MORRISVILLE, N.C. (AP) – Clorox Co., looking to expand into the natural beauty products business, said Wednesday it would purchase lip balm maker Burt’s Bees for $925 million.

Burt’s Bees, which got its start in Maine and is now based in Morrisville, N.C., makes beauty products that contain at least 95 percent natural ingredients.

The all-cash deal, expected to close by the end of the year, will help Clorox expand beyond its core business. Oakland, Calif.-based Clorox makes Clorox bleach, Brita water filtration products and Kingsford charcoal, among a wide range of consumer products.

The company estimated that the natural personal care products sector produces annual sales of about $6.4 billion and is growing by about 9 percent annually.

Former back-to-the-lander Roxanne Quimby and beekeeper Burt Shavitz founded Burt’s Bees in the 1980s, selling honey, beeswax candles and polish. The company’s growth ballooned after it shifted its emphasis to lip balm and natural cosmetics.

Quimby bought out Shavitz’ share of the business, moved Burt’s Bees to North Carolina and in 2003 sold 80 percent of the company to Manhattan-based buyout firm AEA Investors for $177 million. She used a share of the profits to buy land in northern Maine that she hopes will eventually become part of a national park.

Clorox said Burt’s Bees will continue to base its operations in North Carolina.

The announcement came on the same day Clorox reported a 1 percent decline in profits for its first fiscal quarter. The company also cut its 2008 earnings outlook by 10 cents to 15 cents per share, but said the Burt’s Bees transaction would begin adding to earnings in fiscal year 2009.

AP-ES-10-31-07 1552EDT