On July 11, 2019, Colgate-Palmolive Company (“
Colgate
”) announced that Colgate and Filorga Initiatives (“Filorga”) entered into a Share Purchase Agreement, dated as of July 11, 2019 (the “
Share Purchase
Agreement
”), pursuant to which Colgate has agreed to acquire Laboratoires Filorga Cosmétiques (the “
Company
,” and such transaction, the “
Transaction
”) for an equity purchase price of €1,495.5 million in cash. At the closing of
the Transaction, Colgate will acquire the Company, including cash, debt and working capital it has accrued since January 1, 2019, and Colgate will pay Filorga an amount of interest on the purchase price calculated at an annual rate of 2% in respect
of the period commencing January 1, 2019 and ending on the closing date of the Transaction.
The consummation of the Transaction is subject only to the approval of the Austrian Federal Competition Authority, the French Competition Authority and the Federal Antimonopoly Service of the Russian Federation, as well
as the absence of any governmental proceeding, order or law that would prohibit the consummation of the Transaction (together, the “
Closing Conditions
”).
The Share Purchase Agreement contains representations and warranties by each of Filorga and Colgate, which are subject to certain qualifications and exceptions. The Company has obtained representation and warranty
insurance from a third party insurer, which will provide a limited amount of coverage for breaches of Filorga’s representations and warranties, subject to deductibles and certain other terms and conditions.
Either party may terminate the Share Purchase Agreement if the Closing Conditions are not satisfied on or before December 31, 2019, provided, however, that each of Colgate and Filorga have a right to extend this date to
March 31, 2020 without the consent of the other party.
The Share Purchase Agreement also provides Colgate with certain rights to recover from Filorga for, among other things, breaches of certain fundamental representations and warranties of Filorga and with respect to
certain claims or proceedings related to Filorga’s other businesses and that do not relate to the Company’s business. Filorga has also agreed to certain non-compete and employee non-solicitation obligations which will continue for a period of three
years from closing, and Filorga and the Company (and/or certain of their affiliates) will provide transitional services to each other for a limited post-closing period.
A copy of the press release issued by Colgate announcing the execution of the Share Purchase Agreement is attached hereto as
Exhibit 99.1
and is incorporated by reference into this Item 8.01.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K may contain forward-looking statements (as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission (the “
SEC
”)
in its rules, regulations and releases) that set forth, among other things, anticipated results based on management’s plans and assumptions and the timing of completion of the Transaction. Such statements may relate, for example, to the expected
timing of the closing of the Transaction and the expected impact on 2019 earnings, among other matters. These statements are made on the basis of Colgate’s views and assumptions as of this time, and Colgate undertakes no obligation to update these
statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, Colgate does not, nor does any other person, assume responsibility for the accuracy and
completeness of these statements. Colgate cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. For more information about
factors that could impact Colgate’s business and cause actual results to differ materially from forward-looking statements, investors should refer to Colgate’s filings with the SEC (including, but not limited to, the information set forth under the
captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in Colgate’s Annual Report on Form 10-K for the year ended December 31, 2018, and subsequent Quarterly Reports on Form 10-Q). Copies of these filings may be obtained
from Colgate’s website at http://www.colgatepalmolive.com.