Carson, Inc. Completes Acquisition of Johnson Products Company.SAVANNAH Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. , Ga.--(BUSINESS WIRE)--July 14, 1998--Carson, Inc. (NYSE NYSE See: New York Stock Exchange :CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. ), a leading international manufacturer and marketer of hair care products for people of African descent, announced today that it has completed the previously announced acquisition of Johnson Products Co, a major manufacturer of personal care products for the ethnic market, from IVX Bioscience Inc. Johnson Products' hair care products include brand names such as Gentle Treatment(R), Ultra Sheen(R), Precise(R), Bantu(R), and Afro Sheen(R). Its cosmetics are sold under the Posner name. Also included in the acquisition was the Dermablend(R) corrective cor·rec·tive adj. Counteracting or modifying what is malfunctioning, undesirable, or injurious. n. An agent that corrects. corrective, n cosmetics line. The purchase price was approximately $85 million. "Johnson Products Co. provides a major strategic addition to our company. It fits perfectly with Carson's focus on the worldwide ethnic personal care business" said Gregory J. Andrews, Chief Executive Officer of Carson. "Our products now have leading positions in virtually every category of the U.S. ethnic hair care business. Johnson provides us with additional highly recognized brands to strengthen our position internationally, where we expect to be a growing presence." Mr. Andrews, who joined Carson as CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. this month after a 9-year career as a senior executive with Colgate-Palmolive Company, had prior to that been General Manager and Executive Vice President of Johnson Products Co. "My experience with Johnson Products should help hasten has·ten v. has·tened, has·ten·ing, has·tens v.intr. To move or act swiftly. v.tr. 1. To cause to hurry. 2. the smooth integration of these two fine companies," said Mr. Andrews. Initial financing for the acquisition was a combination of $35 million in cash and a short term $50 million seller note. The Company has said that the acquisition will be funded in part by proceeds of the company's recent sale of a portion of its ownership of Carson Holdings, its publicly traded South African subsidiary, and in part from proceeds expected to be generated by the previously announced divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the Cutex line of nail polish and nail polish removers nail polish remover n → quitaesmalte m nail polish remover nail n → dissolvant m nail polish remover nail n . The Company also announced it intends to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. Dermablend(R) immediately, as it does not fit with Carson's strategic focus on the worldwide ethnic personal care business. Carson, Inc. is a leading global manufacturer and marketer of ethnic hair care products which are specifically formulated to address the unique hair characteristics of people of African descent, including hair relaxers and texturizers, hair color, shaving products and hair care maintenance products. Carson sells its products in the U.S. and in over 60 countries around the world under the brand names Dark & Lovely, Excelle, Beautiful Beginnings, Dark & Natural, Magic, and Let's Jam. Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; together with other statements that are not historical facts, are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, industry cyclicality, fluctuations in customer demand and order patterns, the seasonal nature of the business, changes in pricing, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.
CONTACT: Carson, Inc
Robert Pierce, CFO
(912) 651-3807
or
Anreder Hirschhorn Silver and Company
Steven Anreder, 212/421-4020
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