CINCINNATI -- Procter & Gamble Co., liking the financial fragrance of the men's toiletries market, Wednesday bought the Old Spice and Sante Fe operations for $300 million from American Cyanamid Co.'s Shulton group.
'This gives us a strong foothold in the male toiletries business worldwide,' said Edwin L. Artzt, P&G's chairman and chief executive officer.
'The male toiletries and fragrances markets have great growth potential, and Shulton's Old Spice represents an outstanding first entry for us. It has the quality and reputation to become a major world brand.'
The deal calls for P&G to buy the Old Spice and Sante Fe men's toiletries and fragrances, along with several other products in the United States and internationally. Excluded, however, was the Pierre Cardin fragrance line.
Also, Wayne, N.J.-based American Cyanamid said it will pursue the sale of Shulton's line of Breck hair care products and Lady's Choice personal care products to other parties. The total value of these combined transactions to American Cyanamid will be $370 million.
The final cost to P&G will be somewhat more than $300 million, depending on what American Cyanamid gets from the sale of the Breck and Lady's Choice product lines.
Under the agreement, P&G will acquire a manufacturing facility in Memphis, Tenn., and three in other countries.
The agreement is subject to the normal Hart-Scott-Rodino antitrust review by the federal government.