P&G’s divestment strategy triggers more speculation

Proctor & Gamble, the global household products manufacturer, has had a busy 15 months since the beginning of 2014 and yesterday it hit the news again, with another potential sale of yet more brands. 

This time the speculation relates to as yet unnamed beauty brands which are being linked with a divestment via an IPO. P&G has refused to comment, but should this materialise into a deal then it would be further evidence of the group’s strategy of consolidating products to a smaller collection of profitable brands. 

P&G has disposed of subsidiaries to raise proceeds of over $6.8bn since January 2014 and this is before the speculated sales of Wella, with a reported valuation of $7bn, and Braun at $1.2bn. These two potential deals, along with yesterday’s reported disposals and a few others, have not yet been formally confirmed but would be further proof of this consolidation around key brands.

 

Filed under: consumer, IPO, UK, brands