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Procter & Gamble Buys Wella Stake

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By: TOM BRANNA

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The Procter & Gamble Co., Cincinnati, officially bought German beauty and hair care company Wella from majority shareholders on Friday. The 77.6% stake cost 3.2 billion euros.

Procter & Gamble intends to make a tender offer for the remaining shares of Wella, and will offer 92.25 euros per share in cash for voting shares, and 61.50 euros per share in cash for preferred stock, valuing total shares at 5.4 billion euros.

Wella’s preferred shareholders may receive the option of accepting P&G shares as an alternative to the cash offer. In addition to the 5.4 billion-euro offer for Wella, Procter & Gamble will assume debt of 1.1 billion euros, bringing the total acquisition value to 6.5 billion euros.

Procter & Gamble expects the Wella transaction to add sales of about 3.4 billion euros to P&G’s overall beauty business. P&G said it expects to keep Wella’s professional salon business largely intact.

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