Procter Becomes Majority Holder in Wella

Procter & Gamble closed a EUR4.65 billion deal to purchase Germany-based Wella AG. Procter & Gamble Company closed the stock purchase agreement with the family shareholders of Wella AG, Wella said in a statement.

In accordance with the tender offer launched on April 28, 2003, P&G will purchase the additional tendered Wella shares on Sept. 10, the company said. With these combined transactions, P&G will own 98.1% of Wella voting shares and 79.2% of total company shares for a purchase price of EUR4.65 billion.

This joint approach will result in increased product innovations and additional growth opportunities. Procter & Gamble expects a combined synergy potential of about EUR300 million for both companies.

Heiner Guertler, chairman of the management board of Wella AG and managing director of Cosmopolitan Cosmetics, has accepted an offer to serve as a president on Procter & Gamble’s Global Leadership Council. He will represent the Clairol and Wella Professional Businesses and Cosmopolitan Cosmetics. He will also remain chairman of the Wella management board.