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.
Henkel to acquire leading deodorant brands in the USA
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.
The Dial Corporation, Scottsdale 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. Sales in 2005 of these brands amounted to about 275 million US dollars. 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.