Dial To Exit Argentina

l The Dial Corporation announced that it has reached an agreement to sell its Argentina business to an entity designated by Southern Cross Group, a private equity investor in Argentina.
The pending transaction is structured as a sale of the assets of Dial Argentina S.A., which includes the stock it holds of its two subsidiaries, Sulfarge, S.A. and The Dial Corpor-ation San Juan S.A.
The sale is subject to satisfaction of negotiated closing conditions and receipt of approvals under Argentina’s antitrust and bulk transfer laws. It is expected to close late in the first quarter or early in the second quarter.
The after-tax loss from this transaction in the fourth quarter is expected to be in the range of $50-60 million or $0.53-0.64 per share (diluted).
“Although our in-country business remained relatively strong, Argentina is not a good fit for us. Our business is primarily a North American business, and Argentina has been a management distraction and challenge,” said Her-bert M. Baum, Dial’s chairman, president and chief executive officer.
Sales in Argentina, on a dollar basis, declined from $63 million in the first nine months of 2001 to $39.4 million in the same period of 2002, largely because of the devaluation of the peso.