Breaking News

Colgate Acquires GABA; Strengthens Portfolio

November 14, 2005

Colgate-Palmolive Co. has agreed to pur-chase European oral care company GABA Holding AG, Switzerland. GABA is a privately-owned company with long-standing ties to the dental community and market leadership in the European pharmacy channel, company executives said. GABA products are professionally endorsed. The acquisition aims to strengthen Colgate’s oral care business in Europe.

“GABA is one of the few major privately-held toothpaste companies worldwide,” said Reuben Mark, chairman and chief executive officer, Colgate-Palmolive. “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.”

The acquisition is subject to Colgate acquiring more than 80% of outstanding GABA shares at closing. Included in the assets of the business to be acquired is $110 million net cash.

“GABA is an excellent strategic fit with Colgate’s high-margin global oral care leadership, and will help us as we methodically increase that leadership around the world,” insisted Mr. Mark. “This highly complementary business combination should further accelerate the growth of both Colgate and GABA brands while expanding our leadership positions throughout Europe.”

The acquisition is expected to have a dilutive effect of about 3% on total company earnings in 2004, an approximately neutral effect in 2005 and a positive effect on earnings anticipated from growth and efficiencies by 2006.

“GABA’s strength in the important European pharmacy channel complements Colgate’s leading presence in mass retail, and GABA’s therapeutic positioning complements Colgate’s multi-benefit product line,” Mr. Mark said. “Colgate will also benefit from GABA’s long-established relationships with the European dental community. GABA has the strongest dental detailing force in Europe and is the No. 1 recommended brand by dentists in (its) key markets.”
blog comments powered by Disqus
  • What’s New at La Prairie?

    What’s New at La Prairie?

    Melissa Meisel, Associate Editor||April 25, 2016
    VP of marketing shares the latest buzz with Happi.

  • Mapping Out Multicultural Beauty

    Mapping Out Multicultural Beauty

    April 25, 2016
    Agnieszka Saintemarie of Kline Group about current trends and challenges in multicultural beauty.

  • At a Loss for Curls?

    April 22, 2016
    Amplixin, a Miami-based maker of hair strengthening products, has a solution for hair loss.

  • Who Makes That?

    Who Makes That?

    Tom Branna, Editorial Director||April 1, 2016
    From concept and formulation to testing and filling, today’s contract manufacturers perform a range of services for marketers

  • Multi-Cultural Beauty Update

    Multi-Cultural Beauty Update

    Christine Esposito, Associate Editor||April 1, 2016
    Established brands and start-ups address the needs of multi-cultural beauty consumers.

  • The Scalp Microbiome

    The Scalp Microbiome

    Nava Dayan PhD, Dr. Nava Dayan LLC||April 1, 2016
    A review of recent findings and innovative approaches for treating scalp disorders.