The Dial Corporation, a company of the Henkel Group, signed an agreement to acquire several well-known and successful body care brands from Procter & Gamble. Sales in 2005 of these brands amounted to about 275 million US dollars.
02/20/2006, Düsseldorf and Scottsdale
Henkel to Acquire Leading Deodorant Brands in the USA - Expansion of the Cosmetics/Toiletries.
The Dial Corporation, a company of the Henkel Group, signed an agreement to acquire several well-known and successful body care brands from Procter & Gamble. Sales in 2005 of these brands amounted to about 275 million US dollars.
Düsseldorf, Germany/Scottsdale, Ariz., February 20, 2006 - The Dial Corporation, a company of the Henkel Group, and The Gillette Company, a subsidiary of Procter & Gamble, signed a definitive agreement on February 20, 2006, under which Dial will acquire several strong antiperspirant/deodorant brands. These very well-known brands include Right Guard, Soft & Dri and Dry Idea, which Procter & Gamble was required to divest as part of the FTC Consent Decree related to the Procter &Gamble/Gillette merger. The purchase price amounts to about 420 million US dollars.
Closing of this transaction, which is still subject to customary approval from the antitrust authorities, is expected before the end of the first quarter of 2006.
"These leading brands are a perfect fit to our core business body care and will further increase growth and profitability of this business," says Hans Van Bylen, Executive Vice President of Henkel Cosmetics/Toiletries. "We are excited to become the number 3 in the attractive U.S. deodorants market through this acquisition, thus complementing the strong Dial portfolio."
The brands that are to be acquired realize 80 percent of their sales in North America, the rest mainly in United Kingdom. A smaller share of sales is realized in Latin America and Australia.
"Henkel - A Brand like a Friend". Henkel is a leader with brands and technologies that make people's lives easier, better and more beautiful. The Henkel Group, a Fortune Global 500 company, operates in three strategic business areas - Home Care, Personal Care, and Adhesives, Sealants and Surface Treatment. In fiscal 2005 the Henkel Group generated sales of 11.974 billion euros. More than 50,000 employees work for the Henkel Group worldwide. People in approximately 125 countries around the world trust in brands and technologies from Henkel.
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