The Federal Trade Commission cleared the way last week for the proposed acquisition of the Gillette Co. by the Procter & Gamble Co. And, now that the deal has received regulatory clearance in both the U.S. and E.U., the company said the $57 billion acquisition took effect Oct. 1.
“We are excited that we can now move on to the Gillette closing and integration,” said A.G. Lafley, P&G president and CEO in a statement. “The addition of Gillette will broaden our line-up to 22 brands with over a billion dollars in sales and will take us into new product areas, creating tremendous new opportunities to bring great products to consumers, great value to customers and increase shareholder value.”
As a condition of antitrust approval, P&G was required to sell off some products.
It sold its SpinBrush battery toothbrush brand to Church & Dwight Co., the maker of Arm & Hammer baking soda, for as much as $100 million. SpinBrush is marketed under the Crest brand, which overlaps with Gillette’s Oral-B brand. Following the closing, it will divest Rembrandt, a Gillette oral care product line, and Right Guard, a Gillette deodorant. Two other Gillette deodorant brands, Soft & Dri and Dry Idea, will be offered for sale to the Right Guard buyer. The divestiture process will continue during the October to December quarter, Gillette said.
The Right Guard brand could sell for $225 million to $300 million, news reports said.
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