01.07.03
Procter & Gamble aims to meet up to one-quarter of its long-term target for sales growth through acquisitions, according to A.G. Lafley, president and chief executive of the U.S. consumer products group. Mr Lafley said acquisitions would add at least 1 percentage point to sales as part of its plan to boost turnover by 4-6%. "We think about 2% is market growth and we tried to be conservative. There is another 1-3% that we call organic growth, and that is internally generated innovation," Mr Lafley told Les Echos, the Financial Times' French sister paper.
Boasting a war chest of $8-10 billion, the group plans in particular to develop in the beauty and health care sectors, where its sales now near $15 billion. "We are still a relatively small player in these fast-growing businesses," Mr Lafley admitted.
Asked about P&G's interest in Wella, the German hair care company, Mr Lafley declined to comment but said: "I read that Henkel [the German consumer products group] apparently made an offer and it sounds like Wella said 'no'. We will have to see what they want to do." Mr Lafley confirmed that P&G needed to expand its hair care business, notably in Europe.
Beiersdorf, the German manufacturer of Nivea creams, has also been talked of as a target for P&G. Its main shareholder, Allianz, could dispose of its stake in order to focus on its core insurance business.
But Mr Lafley denied P&G had made an offer for Beiersdorf, which is valued at about $10.4 billion, according to the European press.
Boasting a war chest of $8-10 billion, the group plans in particular to develop in the beauty and health care sectors, where its sales now near $15 billion. "We are still a relatively small player in these fast-growing businesses," Mr Lafley admitted.
Asked about P&G's interest in Wella, the German hair care company, Mr Lafley declined to comment but said: "I read that Henkel [the German consumer products group] apparently made an offer and it sounds like Wella said 'no'. We will have to see what they want to do." Mr Lafley confirmed that P&G needed to expand its hair care business, notably in Europe.
Beiersdorf, the German manufacturer of Nivea creams, has also been talked of as a target for P&G. Its main shareholder, Allianz, could dispose of its stake in order to focus on its core insurance business.
But Mr Lafley denied P&G had made an offer for Beiersdorf, which is valued at about $10.4 billion, according to the European press.