Colgate To Sell Its North American Laundry Detergent Brands; Separately, Will Repatriate $800 Million From Overseas Operations U
July 12 2005 - 8:00AM
PR Newswire (US)
Colgate To Sell Its North American Laundry Detergent Brands;
Separately, Will Repatriate $800 Million From Overseas Operations
Under American Jobs Creation Act NEW YORK, July 12, 2005
/PRNewswire-FirstCall/ -- Colgate-Palmolive Company (NYSE:CL)
announced today its agreement to sell its North American heavy-duty
laundry detergent brands to Phoenix Brands LLC. The transaction
includes the sale of the detergent brands Fab, Dynamo, Arctic
Power, ABC, Cold Power and Fresh Start, and the license of the Ajax
brand for laundry detergents, in the United States, Canada and
Puerto Rico. Reuben Mark, Colgate's Chairman and CEO said, "The
sale of these detergent brands is an important part of Colgate's
strategy to de-emphasize detergents while focusing on our high
margin, fast-growing oral, personal and pet care businesses." The
sale, which is subject to approval by U.S. regulatory authorities,
is expected to close in the third quarter of 2005 and generate a
one-time after-tax gain of $60 million. Other one-time items
expected in the third quarter 2005 include the previously disclosed
restructuring charges of approximately $50 million after-tax and as
expected, a one-time tax charge covering cash repatriation from
overseas operations under the American Jobs Creation Act. It is
expected that approximately $800 million will be repatriated at a
one-time tax cost estimated at $35 million. Mr. Mark concluded,
"The sale of the North American detergent brands will increase our
North American gross profit margin by 100 basis points and generate
even greater focus on our strong and strategically vital oral,
personal and pet care businesses." * * * About Colgate-Palmolive:
Colgate-Palmolive is a leading global consumer products company,
tightly focused on Oral Care, Personal Care, Home Care and Pet
Nutrition. Colgate sells its products in over 200 countries and
territories around the world under such internationally recognized
brand names as Colgate, Palmolive, Mennen, Softsoap, Irish Spring,
Protex, Sorriso, Kolynos, Elmex, Ajax, Axion, Soupline, Suavitel
and Fab, as well as Hill's Science Diet and Hill's Prescription
Diet pet foods. For more information about Colgate's global
business, visit the Company's web site at http://www.colgate.com/.
This press release (other than historical information) may contain
forward-looking statements. Actual events or results may differ
materially from those statements. Investors should consult the
Company's filings with the Securities and Exchange Commission
(including the information set forth under the caption "Cautionary
Statement on Forward-Looking Statements" in the Company's Form 10-K
for the year ended December 31, 2004) for information about factors
that could cause such differences. Copies of these filings may be
obtained upon request from the Company's Investor Relations
Department or the Company's web site at http://www.colgate.com/.
DATASOURCE: Colgate-Palmolive Company CONTACT: Bina Thompson,
+1-212-310-3072, or Hope Spiller, +1-212-310-2291 Web site:
http://www.colgate.com/
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