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 Next for the UK?

    Sarah Boumphrey, Euromonitor International||June 24, 2016
    Euromonitor weighs in on the implications for consumer product companies.

  • Henkel Grabs the Sun

    Henkel Grabs the Sun

    Ian Bell, Euromonitor International||June 24, 2016
    Euromonitor's Ian Bell on the impact the purchase will have on the US detergent industry.

  • To The Max

    To The Max

    Melissa Meisel, Associate Editor||June 20, 2016
    Velvet 59 is on the rise at locations like Ricky’s NYC.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.