Colgate-Palmolive Will Sell European Detergents to P&G

Colgate-Palmolive Company has agreed to sell its European laundry detergent brands, marketed in France, Italy and Scandinavia, to Procter & Gamble. The sale is subject to approval by regulatory authorities in France.

Reuben Mark, Colgate’s chairman and chief executive officer, called the sale consistent with Colgate’s strategy to de-emphasize detergents while investing in high margin businesses.

Mr. Mark concluded, “This sale will increase our European gross margin and allow even greater focus on our strong and strategically vital oral and personal care businesses.”

Under the agreement, P&G will market Axion in France, Dynamo in Denmark, Dinamo in Italy and Ajax in Sweden. P&G will also acquire the Gama brand in France. The agreement does not involve any facilities or employees. The deal is subject to normal regulatory approvals in Europe.

“This deal is great news for P&G,” said Paul Polman, president, Western Europe, P&G. “It is fully in line with our strategy to focus on and build our fabric care business-a core category for P&G. This move will strengthen our portfolio of laundry brands in Western Europe and provide better value and more choices for our consumers.”