12.18.03
Colgate-Palmolive Co. on Thursday said it has agreed to acquire privately held Swiss toothpaste maker GABA Holding AG, expanding its business at European pharmacies.
Colgate said it will pay 800 million to 1.05 billion Swiss francs, or $630 million to $830 million, in cash for GABA. The deal is expected to cut Colgate's 2004 earnings by 3%.
Reuben Mark, Colgate's chairman and chief executive officer said, "GABA is one of the few major privately held toothpaste companies worldwide. Looking back, we were able to improve our already strong Asian toothpaste business in 1985 when we formed a joint venture with the Hawley & Hazel oral care company. Similarly, in 1995 we acquired the Kolynos toothpaste franchise, materially strengthening our powerful Latin American oral care business. The GABA acquisition should have a similar effect on our overall European toothpaste business, where we are already No. 1."
GABA has sales of almost $300 million in 15 European countries of which over $200 million is oral care.
Colgate said it will pay 800 million to 1.05 billion Swiss francs, or $630 million to $830 million, in cash for GABA. The deal is expected to cut Colgate's 2004 earnings by 3%.
Reuben Mark, Colgate's chairman and chief executive officer said, "GABA is one of the few major privately held toothpaste companies worldwide. Looking back, we were able to improve our already strong Asian toothpaste business in 1985 when we formed a joint venture with the Hawley & Hazel oral care company. Similarly, in 1995 we acquired the Kolynos toothpaste franchise, materially strengthening our powerful Latin American oral care business. The GABA acquisition should have a similar effect on our overall European toothpaste business, where we are already No. 1."
GABA has sales of almost $300 million in 15 European countries of which over $200 million is oral care.