Procter & Gamble acquires Gillette

The Proctor & Gamble Company has signed a deal to acquire 100% of the Gillette Company. Under terms of the agreement, P&G has agreed to issue 0.975 shares of its common stock for each share of Gillette common stock. Based on the closing share price of P&G and Gillette stock on Jan. 27, 2005, this represents an 18% premium to Gillette shareholders.
"Gillette and P&G have similar cultures and complimentary core strengths in branding, innovation, scale and go-to-market capabilities, making it a terrific fit," said A.G. Lafley, president and CEO of Proctor & Gamble. "The combination of two best-in-class consumer companies, at a time when they are both operating from a position of strength, is a unique opportunity."
Founded in 1901, Gillette is headquartered in Boston and markets a number of consumer products, including Gillette razors, Duracell CopperTop batteries, Oral-B toothbrushes and Braun shavers and small appliances. P&G markets a wide range of well-known brand products in the personal care industry, including Pampers, Crest and Head and Shoulders. P&G has a total of 16 brands worth a billion dollars in annual sales, while Gillette has five billion-dollar brands.