By Marketing Week 29 Aug 8: It has sold off Sunny Delight, Sure deodorant and several detergents, and there is speculation that Lafley will soon dispose of underperforming brands from the Gillette business. Growth at Duracell, in particular, has been disappointing.
Products from Gillette Research include not only its signature razors but also Duracell batteries and Braun and Oral-B brands dental care products. For more, click here. The deal would give the company even more control over shelf space at the nation's retailers and grocers, real estate that is at a premium.
It's exposure to the consumer and everyone wants exposure to the consumer," said retail analyst Kurt Barnard. Based on Thursday closing prices, that would represent an 18 percent premium for Gillette shares.
It said that repurchase program should be the equivalent as if the deal were structured as 60 percent stock and 40 percent cash. Job cuts coming The deal will mean about 6, job cuts, or about 4 percent of the combined work force ofemployees.
It said most of the cuts would come from eliminating management overlaps and consolidation of business support functions. It also will allow them to get further savings from broadcasters and other media companies on advertising purchases.
One stock that fell in early European trading Friday morning on the news of the deal was Walt Disney Co. Daley said the combined company should also see savings from manufacturing as well as the logistics of moving productions from plants to stores.
And basic corporate administrative costs also are ripe for savings.
Executives at the two companies insisted the deal will also mean new product development for their customers. They said increased scale from the combination should help improve margins, which in turn should allow additional investment in research and development.P&G is acquiring Gillette, creating a massive consumer-products company, for stock initially valued at $54 billion.
The deal expands P&G's reach into the men's grooming market and internationally. It is also expected to strengthen its clout with retailers.
'Reverse synergy' strategy is a mixed bag. One key goal in the merger -- to tap "reverse synergies" by incorporating as much as possible of a Gillette culture widely seen as a rival to P&G's for. The merger between Procter & Gamble and Gillette comes with the obvious chemistry of male and female product lines, but the two companies also share a culture of innovation and a history of.
The P&G-Gillette merger is one of the biggest mergers in the history of the consumer goods industry. The merger gives P&G access to new products and markets, . The P&G-Gillette merger is one of the biggest mergers in the history of the consumer goods industry.
The merger gives P&G access to new products and markets, and change the dynamics of the consumer goods industry. Made the merger easier for Gillette employees — Employees who joined P&G from previous business mergers reached out with advice to the Gillette employees through intranet postings.
P&G also worked hard to establish cross-company connections, matching seasoned employees with .