Colgate Sells Asian Laundry Brands to P&G

Colgate-Palmolive Company has sold its southeast Asian heavy-duty laundry detergent brands to the Procter & Gamble Company as part of its effort to focus on high-margin, fast-growing business lines.
The sale includes detergent brands Fab, Trojan, Dynamo and Paic, which are marketed in Thailand, Malaysia, Singapore and Hong Kong. As a result of the deal, two detergent factories will be closed or modified. The company said it expects that the one-time net gain resulting from the transaction will be fully offset by fourth-quarter restructuring charges.
“This simplification of our portfolio will increase gross profit margin in our Asia/African division and will allow even greater focus on our strong and highly profitable oral, personal and pet care businesses,” explained chairman and chief executive Reuben Mark.