Procter & Gamble plans to remove batteries
NEW YORK — Procter & Gamble plans to make Duracell a stand-alone company.
The world’s largest consumer products maker, which acquired Duracell in 2005, has been trimming its product lineup to focus on its top performers. After it finishes jettisoning more than half its brands around the globe over the next year or two, P&G said it will be left with about 70 to 80 brands.
If a split-off of Duracell occurs, P&G said its shareholders would have the option of exchanging some, none or all of their P&G shares for shares of the new Duracell company.
Jon Moeller, the company’s chief financial officer, said Duracell is an “attractive” business that generates about $2 billion a year in sales. But he said P&G wants to focus on products that are “even more attractive.”
P&G also makes Tide detergent, Pampers diapers and Olay skin care.
Procter & Gamble, based in Cincinnati, said Friday it prefers a spinoff of Duracell, but it’s considering a sale or other options.
The decision to sell or discontinue 90 to 100 brands — many of them smaller, regional products — comes as Procter & Gamble fights to boost sluggish sales. In the latest quarter, for instance, the company said sales volume declined in its beauty, hair and personal care unit. Volume also fell in its grooming unit, with blades and razors declining in developed markets.
