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Henkel, the German maker of cosmetics and consumer chemicals, has agreed acquire a selection of deodorant brands from Gillette, a unit of Procter and Gamble, for around US$420.0 million (353.0 million euros). The acquisition includes brands such as Right Guard, Soft and Dri and Dry Idea, which Procter and Gamble had been ordered by the Federal Trade Commission to sell as a condition for its takeover of Gillette.
The deodorant brands reported sales of approximately US$275.0 million in 2005, around 80.0 percent of which were generated in North America. The transaction, which was expected to be completed by the end of March, would make Henkel the third largest company in the U.S. deodorants market, the German company added.
According to reports, the transaction is subject to antitrust approval, but the company expects to close the deal before the end of the first quarter of 2006.
Henkel is best known for its Persil washing powder.