Procter & Gamble Co (NYSE:PG) can’t get enough of dismantling done, and just after a few weeks of its Duracell deal, the company is back in business with Goldman Sachs Group Inc (NYSE:GS) acting as its trusted advisor. CNBC’s Dominic Chu reported on the latest weight that will be shed from Procter & Gamble’s balance sheet.
“We have Reuters reporting that Procter & Gamble Co (NYSE:PG) is exploring a possible sale of its Wella haircare business, and has retained the services of Goldman Sachs Group Inc (NYSE:GS) to explore that possible sale. Possible price tag could be as much as $7 billion in sale of this Wella hair care business […],” informed Chu.
If there is anything clear about Wella from Procter & Gamble Co (NYSE:PG)’s latest decision, it is that the brand wasn’t churning out satisfactory numbers for one of the largest providers of consumer packaged goods. At least they did not satisfy the company’s relatively new CEO, Alan George Lafley, who joined Procter & Gamble in 2013.
“[…] This falls on the heels of course of them getting rid of, or selling to Berkshire Hathaway Inc. (NYSE:BRK.A) the Duracell battery business and earlier this year selling their pet food business to Mars, so again Procter & Gamble Co (NYSE:PG) in its efforts to streamline its brands and businesses, CEO A.G Lafley, who earlier said this year that they wanted to focus on other brands […],” said Chu.
Lafley has earlier expressed the plan to get rid of around 100 brands. Nearly 25% of his work is done, so we would be hearing more news of this nature from Procter & Gamble Co (NYSE:PG) in the future. This decision came in order to waken up the consumer goods giant which was beginning to fail in posting substantial growth in earnings. Hence, the plan is to concentrate on fewer brands, less than a 100 actually, which are most profitable and have the greatest room for innovation. Wella did not fit this bill.
Video Embed Size: 530 X 298 640 X 360
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.