Procter & Gamble’s purchase of Gillette is likely to lead to further consolidation in the category as smaller companies struggle to compete, an analyst has warned.
The $57bn deal significantly swells P&G’s portfolio. It includes Gillette razors, Braun and Duracell and Oral B.
David Brooks, Head of M&A at Grant Thornton Corporate Finance, said that demands from the retailers were forcing more brand consolidation, and that serious-sized players in health and beauty and other categories
were likely to merge in the future.
P&G, which owns haircare brands Head & Shoulders and Pantene, has sold its Crest SpinBrush to consumer products company Church & Dwight and put its Rembrandt toothpaste and Right Guard brands up for sale as part of the deal. It has also sold its Yardley brand to the Lornamead Group in a separate deal for an undisclosed sum.
Potential buyers for Rembrandt and Right Guard include Unilever, Colgate-Palmolive and Reckitt Benckiser, although P&G would not comment on whether it had received any offers.