Sells Non-Core Brands
l Playtex Products, Inc. announced that it has sold its non-core brand assets including Baby Magic, Mr. Bubble, Ogilvie, Binaca, Dorothy Gray, Dentax, Tek, Tussy, Chubs and Better Off. The brands were sold to Cenuco, Inc., parent company of Lander, a health and beauty care products company. The purchase price for the brand assets is $57 million in cash received at closing, subject to certain adjustments.
“The divestiture of these brands is consistent with our strategic focus on our core categories of feminine care, infant care and skin care. While it is slightly dilutive in the near term, we believe this transaction will greatly simplify our business, reduce costs and therefore improve profits in the long run,” said Neil P. DeFeo, Playtex’s president and chief executive officer.
Playtex anticipates that divestiture of these brands will lower projected sales for 2005 by approximately $6 million, and by approximately $53 million on a fully annualized basis.