The Dial Corporation
, a Henkel Group
company, and The Gillette Company
, a subsidiary of Procter & Gamble
, signed a definitive agreement under which Dial will acquire several antiperspirant/deodorant brands—including Right Guard, Soft & Dri and Dry Idea. Procter & Gamble was required to divest these brands as part of the FTC Consent Decree related to the Procter &Gamble/Gillette merger. The purchase price amounts to approximately $420 million. 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, Henkel Cosmetics/Toiletries. "We are excited to become the number three 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% of their sales in North America, the rest mainly in United Kingdom. A smaller share of sales is realized in Latin America and Australia.