Consumer goods giant Colgate-Palmolive announced on Monday it has agreed to sell its European laundry detergent brands to rival Procter & Gamble in order to focus on its oral and personal care businesses.
Details of the agreement were not disclosed, but the companies revealed that P&G will acquire the Axion and Gama brands in France, Dynamo in Denmark, Dinamo in Italy, and Ajax in Sweden. The agreement does not involve any facilities or employees.
Reuben Mark, Colgate's chairman and CEO said the sale would increase the company's European gross margin and was "consistent with Colgate's strategy to de-emphasise detergents while investing in our high margin, fast growing oral and personal care businesses".
Paul Polman, president of Western Europe at P&G commented: "This deal is great news for P&G. It is fully in line with our strategy to focus on and build our fabric care business - a core category for P&G. This move will strengthen our portfolio of laundry brands in Western Europe and provide better value and more choices for our consumers."
Colgate said it expected that the one-time gain resulting from the transaction to be offset by one-time charges associated with divesting these detergent operations and associated actions.
The sale is subject to approval by regulatory authorities in France.