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
  • 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.