IB Dream Company PROJECT – P&G March 1, 2012
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IB Dream Company PROJECT – P&G March 1, 2012
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A Humble Beginning . . . roctor & Gamble was born in 1837 by the collaboration or William Proctor, a candle maker and James Gamble, a soap maker. They started this partnership at the suggestion of their common father-in-law Alexander Norris. After 175 years, P&G is one of the consumer goods company in the world. It features in the Fortune 500 list and recorded sales of $82.6 billion dollars in 2011.
The year 1837 was quite a difficult time to start any business. Although Cincinnati was a busy market-place, the United States of America was gripped by financial panic. Scores and scores of banks were closing down across the
P&G acquired the Ambi Pur and other air-care brands from Sara Lee for about $700 million in December 2009.
P&G completed its exit from the food business by selling the largest coffee business in US, Folgers to J.M. Smucker Co for about $3 billion in November 2008 and the potato chip brand Pringles to Kellogg for about $2.7 billion in February 2012.
P
IB Dream Company PROJECT – P&G March 1, 2012
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Table 1 Year Acquisitions Stakes Divestitures 2012 0 0 2 2011 0 0 2 2010 3 0 2 2009 3 0 4 2008 2 0 4 2007 3 0 6 2006 0 2 6 2005 4 0 10 2004 4 0 3 2003 1 2 4 2002 1 0 5 2001 5 0 2 2000 2 1 12 1999 5 0 6 1998 2 1 16 1997 3 3 7 1996 5 0 11 1995 4 1 7 1994 3 4 14 1993 4 1 4 1992 3 1 8 1991 4 1 4 1990 3 2 11 1989 5 0 6 1988 1 1 5 1987 2 0 5 1986 2 0 2 1985 2 0 1 1984 0 0 2 1983 1 0 1 1982 3 0 1 1981 1 0 0 Total 81 20 173
IB Dream Company PROJECT – P&G March 1, 2012
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Global Growth Opportunities . . . roctor & Gamble has the reputation for being aggressive in its acquisitions. The acquisition of Wella AG and Gillette Co. are proof of this. We can infer from the P&G’s gradual exit from the food business and the general M&A history of P&G that P&G isn’t making acquisitions simply for the sake of expansion. It has a set strategy in place and is following it. There were major rumours in June 2011 that P&G would make a £38 billion bid for Unilever. This news was not