Helen of Troy to acquire P&G’s Pur business
EL PASO, Texas — Helen of Troy has signed a definitive agreement to acquire all assets of Procter & Gamble’s water purification brand.
The acquisition of P&G’s Pur Water Purification Products company includes the worldwide Pur trademark, its current and future product line, assets related to the operations of the Pur business, manufacturing equipment and more than 200 patents. Pur’s products, which include faucet mount systems and filters, pitcher systems and filters, as well as refrigerator filters, are sold throughout the United States.
Financial terms of the deal, which is subject to customary closing conditions, including regulatory approvals, were not disclosed. The companies did say, however, that the deal is expected to be complete by Dec. 31.
The acquisition does not include the water purification technology that enables P&G’s Children’s Safe Drinking Water corporate philanthropy program, P&G noted.
Helen of Troy chairman and CEO Gerald Rubin called the acquisition of Pur "a natural fit for [the company’s] healthcare/home environment segment."
"We are very excited to add the PUR business to the Helen of Troy family," Rubin said. "Globally, water purification is an important consumer need and water purity is a high profile issue. Pur adds an important brand to our strong portfolio of well-recognized and widely-trusted brands for our retail partners and consumers, and is in line with our overall corporate strategy of adding businesses with value-added consumables, such as the proprietary filters that are important in this category. Through our expertise in product sourcing and long-standing commitment to new product development, we are confident the Pur business will be an integral and important component of Helen of Troy."
Pur sales for the twelve months ending Dec. 31, 2012, are expected to exceed $110 million.
Dollar General to target food deserts with its DG Market concept
GOODLETTSVILLE, Tenn. — Dollar General on Monday told analysts the company plans to open 40 DG Market concepts in 2012 in both new and existing markets based on the success of the concept.
"The results of the DG Market remodels we have completed to date and the early success of our five DG Market stores in Las Vegas are very encouraging," Dollar General chairman and CEO Rick Dreiling told analysts Monday morning. "We introduced our updated general market banner in Nevada and these stores are performing well above our initial expectations. These are our first new Dollar General Markets since early 2007 and we’re excited about introducing the concept into new markets."
DG Market stores offer a wider variety of dry groceries and perishables, in addition to the general merchandise selections at a typical Dollar General store.
DG Markets have average annual sales of $4 million to $5 million, versus the $1.4 million across the regular formats, according to David Tehle, Dollar General CFO and EVP. "The raw margin dollars and profit margin dollars that we get out of a DG Market is very impressive. Now, the mix is more consumable so the margin percent is somewhat lower but again the dollars, the raw dollars we get because of the volume is very impressive," he said. "We also think there’s an opportunity in smaller markets that are what we call food deserts to add tremendous volume where we can go into a town that really needs a DG Market and get a lot of volume and get a lot of market share. That’s really the way we’re playing the DG Market."
"We believe the DG Market concept is well positioned to serve food deserts in both rural and metro areas and reinforces DG’s heritage of serving the underserved," Dreiling added.
Companywide, Dollar General also is looking to further expand its cooler presence. Currently, new stores are opening with 14 to 16 coolers and the company will be installing four additional cooler doors in approximately 1,200 existing locations to better serve their "time conscious customer."
"Fresh and refrigerated foods helped us drive customer traffic and increase basket size by serving a greater share of our customers’ needs," Dreiling said.
When company splits, Kraft CEO to lead snacks biz
NEW YORK — A few months after the split of Kraft Foods into independent, publicly traded companies was announced by the company’s chief executive, new details have emerged regarding who will lead the businesses.
The company’s board of directors announced that current CEO Irene Rosenfeld will lead the global snacks company as chairman and CEO, while current EVP and president of Kraft Foods North America, Tony Vernon, will become CEO of Kraft’s North American grocery company. In addition, John Cahill will become nonexecutive chairman of the North American grocery company. Cahill currently serves as industrial partner of Ripplewood Holdings, a private equity firm.
“Irene, John and Tony are three of the finest executives in business today,” said Mark Ketchum, lead director of Kraft Foods’ board of directors. “Their commitment to shareholder value, passion for brands and focus on sound financial management give the Board great confidence in the future of the snacks and grocery companies.”
The North American grocery company will be called Kraft Foods. The name of the snacks company has yet to be announced, according to published reports.