21 February 2006 09:31 [Source: ICIS news]
LONDON (ICIS news)--Henkel has agreed to buy a range of deodorant brands from US household products giant Procter & Gamble for about $420m (Euro352m), the German specialty chemicals and consumer products group said on Tuesday.
The brands, which include Right Guard, Soft & Dri and Dry Idea, had sales last year of about $275m, said Henkel.
It said the acquisition, by its US division Dial Corporation, was expected to be completed by the end of March, subject to regulatory approval.
"These leading brands are a perfect fit to our core business body care and will further increase growth and profitability of this business," said Hans Van Bylen, executive vice president of Henkel's cosmetics and toiletries division. "We are excited to become the number three in the attractive US deodorants market through this acquisition, thus complementing the strong Dial portfolio."
Henkel said the brands to be acquired from Procter & Gamble unit Gillette realise 80% of their sales in North America and the rest mainly in the UK.
Procter & Gamble was required to divest the brands as part of US Federal Trade Commission (FTC) approval for its merger with Gillette.
Henkel's cosmetics and toiletries division recorded sales last year of Euro2.63bn, 10.5% up on 2004 and up 10.1% after adjusting for foreign exchange fluctuations. It had a poor fourth quarter, however, with sales up just 1% (down 2.4% after foreign exchange adjustments) at Euro670m.
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