Breaking News

P&G, Gillette Selling Right Guard, SpinBrush

October 21, 2005

The Right Guard deodorant business, which is operated by The Gillette Co., is being put up for sale, according to industry reports.
Procter & Gamble Co. is putting the business up for sale to win approval for its $57 billion purchase of the Boston-based Gillette.
Gillette manufactures Right Guard, which has annual sales of about $150 million. The sale of the business is slated for this month and is expected to sell for $225-$300 million. A P&G spokesman could not comment on the report. Likely bids may come from consumer products companies such as Unilever, Colgate-Palmolive Co., Church & Dwight Co., L'Oréal SA and Beiersdorf AG.
It was expected that P&G would sell Right Guard to win Federal Trade Commission approval for its Gillette purchase because combined, the companies have a market share of 43% in men’s deodorant, according to data from Information Resources, Inc.
Meanwhile, Church & Dwight Co. Inc. said it has agreed to buy the SpinBrush toothbrush business from Procter & Gamble Co., a sale P&G also hopes will help lead to antitrust approval of its multibillion dollar acquisition of Gillette Co.
P&G had agreed to divest the business, which had $110 million in sales in the fiscal year that ended June 30, as part of its negotiations over the Gillette deal with the European Commission. SpinBrush competes with some of Gillette’s Oral-B toothbrushes.
Church & Dwight would pay an initial $75 million in cash at the closing of the deal, which would unite the battery-powered toothbrush with its Arm & Hammer and Mentadent toothpaste brands. An additional inventory settlement would be paid following the transfer of the business and Church & Dwight would also pay up to another $30 million based on near-term performance, Church & Dwight said.
The price would be sharply lower than the $475 million P&G paid for SpinBrush between 2000 and 2002. But while battery powered toothbrushes were a hot item in the oral care industry for a while, sales have waned in recent years.
The deal is expected to close in the fourth quarter, subject to review by the Federal Trade Commission and European Commission.
blog comments powered by Disqus
  • Free and Clear

    Free and Clear

    Melissa Meisel, Associate Editor||October 17, 2016
    OY-L aims for zero-chemical skin care.

  • Coming Clean on a Host of Issues

    October 17, 2016
    Cleaning Products Conference is set for Nov. 9-11, 2016 in Washington DC.

  • Let the Magic Begin!

    Let the Magic Begin!

    Tom Branna, Editorial Director||October 10, 2016
    IFSCC Congress gets underway at Walt Disney World this month.

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.