Colgate to Sell Its Household Bleach Business in Latin America and Canada
December 20 2006 - 9:00AM
PR Newswire (US)
Further Increase Focus on Faster Growing, More Profitable Oral and
Personal Care Businesses NEW YORK, Dec. 20, 2006
/PRNewswire-FirstCall/ -- As part of its ongoing strategy to
increase global focus on the more profitable oral and personal care
businesses, Colgate-Palmolive Company (NYSE:CL) announced today its
agreement to sell its Latin American and Canadian bleach brands to
The Clorox Company for $126 million plus inventory at cost at
closing. The transaction includes the sale of the bleach brands
Javex, Agua Jane and Nevex in Canada, Uruguay and Venezuela,
respectively, and the license of the Ajax brand for bleach during a
transition period in Colombia, the Dominican Republic and Ecuador.
Reuben Mark, Colgate's Chairman and CEO said, "As with the sale of
our detergent businesses, this move divests a non-core business in
favor of our oral and personal care businesses, which have more
than double the rate of sales and profit growth in the countries
affected." The sale is subject to regulatory and other customary
approvals in Colombia. The transaction is expected to close in
Canada during fourth quarter 2006. In the Latin American countries,
the transaction is expected to close during first quarter 2007,
although the sale of the Colombian business will be subject to
regulatory approval. It is estimated that these bleach business
sales will result in a cumulative after tax gain of approximately
$70 million and will be fully offset by previously disclosed
restructuring charges under the Company's 2004 Restructuring
Program in all periods. Mr. Mark concluded, "This simplification of
our portfolio will improve gross profit margins in our Latin
American and North American divisions and should facilitate the
stronger growth of our highly profitable oral and personal 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, Tom's of Maine, Ajax, Axion, Soupline, and
Suavitel, 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 captions "Risk
Factors" and "Cautionary Statement on Forward-Looking Statements"
in the Company's Form 10-K for the year ended December 31, 2005)
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, both of Colgate-Palmolive Company Web site:
http://www.colgate.com/
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