"We are excited to move forward on this strategically important acquisition that will strengthen Colgate's positions in the shower gel and deodorant categories in Europe and our overall personal care business in that region," Colgate CEO Ian Cook said.
According to TheStreet guest contributor Trefis, the deal, which was imminent given Colgate's health cash position, strengthens the company's personal care business in Europe with shower gels and deodorants marketed under the Sanex brand amounting to sales of more than $265 million in 2010. It also helps Colgate focus on the higher-margin personal care business amidst rising commodity costs affecting household care product segments. Colgate believes the transaction would increase earnings by 4% and improve margins by 1% by 2012.
The deal also included Colgate selling its laundry detergent business in Colombia to Unilever for $215 million. The selloff of Unilever's deodorants and bath-care business in Europe was required on antitrust grounds for European Union's clearance of the $1.82 billion purchase of Sara Lee's (SLE) personal care business in 2010.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV