Printer Friendly


 CINCINNATI, Dec. 2 /PRNewswire/ -- The Procter & Gamble Company (NYSE: PG) and Gustav und Grete Schickedanz Holding KG (GGS) of Fuerth, Germany announced today that they have reached an agreement for the sale of VP-Schickedanz AG (VPS) to Procter & Gamble. Financial terms of the agreement were not disclosed.
 VPS is a leading European consumer hygiene products company with particular strength in tissue products. Its business is headquartered in Germany with strong positions in a number of other European markets. The VPS brands to be acquired by P&G include Bess toilet tissue, Tempo paper handkerchiefs, Camelia feminine protection and Certina adult incontinence products. The VPS disposable diaper business will be transferred to a trust which has been
created for the sale of this business to a third party. Total sales of the VPS businesses were more than $800 million in 1992.
 "Entering the tissue market in Europe is right in line with our long term growth strategy," said Edwin L. Artzt, chairman and chief executive officer of
the Procter & Gamble Company. "Tissue is a core category in which we have superior product technology and profitable established brands in the United States. VPS gives us strong European brands in countries where P&G already has an established infrastructure and a successful base in the paper business.
 "While this will be our first move into the tissue business outside North America, we are confident that the high quality, profitable brands of VPS and its experienced organization and modern manufacturing facilities give us the right combination for entering the European market. The European tissue/towel market is large -- about equal to the European diaper and feminine protection markets combined -- with about $5.5 billion in manufacturer sales. The real opportunity, however, is the growth potential of a market with per capita tissue usage well below U.S. levels. We should benefit from the growth that is sure to occur as this gap is closed."
 Procter & Gamble's current paper products business in Europe includes disposable diapers, feminine protection pads and adult incontinence products.
 Following a comprehensive strategic review of its business portfolio earlier this year, the board of GGS decided that the group should concentrate on its core activities in the trade and service industries, including financial services, and concluded that it should divest its interest in VPS.
 Commenting on this decision, Wolfgang Buhler, chairman of the board of GGS said, "In the course of our strategic review it has become clear to us that, despite the success we have had in the past, in order to stay leaders in our chosen fields of activity, we will need to focus and concentrate our resources in the future on our core areas - trade and service." Gottfried Beecker, member of the board of GGS and chairman of the Supervisory Board of VPS, added, "While we are proud of the achievements of VPS, we believe that in the longer term the company will have better opportunities in a group where it constitutes a more central part of the overall product strategy. In this respect, we anticipate that the opportunity to build further the VPS business will be enhanced substantially under P&G's ownership."
 The transaction is subject to approval of the European Commission Competition Authorities.
 P&G worldwide had sales of $30.4 billion in 1992-93. The company makes and markets a wide range of products for both consumer and institutional use, has on-the-ground operations in more than 50 countries and sells its products in more than 140 countries.
 -0- 12/2/93 R
 /CONTACT: T. E. Loftus, 513-983-9789, of Procter & Gamble; D. E. Veitch, 32-2-456-27-67, of P&G Europe; Ms. C. Karesch, 49-6196-89-42-64, of P&G Germany; or Mr. Beecker, 49-911-142-3302, or Mr. Probst, 49-911-142-2448, both of GGS Germany/

CO: The Procter & Gamble Company; VP-Schickedanz AG ST: Ohio IN: HOU SU: TNM

BM -- CL006R -- 9661 12/02/93 09:18 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 2, 1993

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters