P&G removes blemish, sells Noxzema
Procter & Gamble Co. has agreed to sell its Noxzema skin-care brand in the U.S., Canada and elsewhere to suburban Chicago-based hair care products maker Alberto-Culver Co., both companies announced the deal Monday.
P&G spokesman Sean Parker says the sale reflects a strategic shift that will allow Cincinnati-based P&G to focus on its Olay and Doctor's Dermatologic Formula anti-aging brands.
The company, which makes a wide range of consumer goods, says the agreement includes existing business in the U.S., Canada and part of Latin America. P&G will retain its mostly male-focused Noxzema shave care, deodorant and body cleanser business in Western Europe.
Financial terms of the deal were not disclosed.
Noxzema was created in 1914 and was acquired by P&G in 1989.
Alberto-Culver, the maker of St. Ives skin products and Sugar Twin, said the Noxzema brand has a lot of value in the global marketplace.
"Noxzema is an iconic U.S. skin-care brand," CEO James Marino said in a statement, adding that it "has great equity among consumers and, together with our existing St. Ives skin-care brand, will provide us with significant opportunities for growth."
Sector watchers said, however, P&G was not supporting Noxzema with advertising money and was not interested in pushing a niche product.
Noxzema sales, which included the face cream among other items, was pegged at $60 million US for the 52 weeks ended June 15.
With files from Associated Press
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