P&G to buy rest of Spanish Arbora & Ausonia JV for $1 bn
21 Jul 2012
US consumer goods manufacturer Procter & Gamble Co (P&G) yesterday launched a $1-billion bid for the rest of its Spanish joint venture with Spain's Agrolimen Group, in order to strengthen and expand its feminine-care and baby-care products businesses.
P&G had established s a 50-50 joint venture in 1989 called Arbora & Ausonia with Barcelona-based Agrolimen Group - a Spanish holding company of the Carulla family with international presence in the food industry.
Arbora & Ausonia sells products such as Dodot diapers and Kandoo and Charmin baby wipes and other feminine care products in Spain, Portugal and the Iberian Peninsula.
The company generates sales of €507 million in Spain, €99 million in Portugal, and €606 million in the Iberian Peninsula.
"While we have valued the partnership with Agrolimen, we entered into a put arrangement because we saw benefits to drive innovation and scale benefits with a 100 per cent ownership interest in this business,'' said Cincinnati, Ohio-based P&G
P&G, whose brands include Pampers, Ariel, Whisper, Pantene, Oral-B, Duracell, Olay, Head & Shoulders, Wella, Gillette, Braun, and Ace, said that it believes the transaction fits with its strategy to focus on its largest businesses.