Warren Buffett’s Berkshire Hathaway to acquire P&G’s Duracell business
OMAHA, Neb. — Warren Buffett is snapping up Procter & Gamble’s Duracell battery business in a deal valued at $4.7 billion.
Pursuant to the agreement, in exchange for a recapitalized Duracell, which will include approximately $1.7 billion in cash at closing, P&G will receive shares of P&G’s common stock currently held by Buffet’s Berkshire Hathaway, having a current value of approximately $4.7 billion.
The transaction is expected to close in the second half of 2015 and is subject to obtaining various regulatory approvals, as well as certain other customary closing conditions.
“I have always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette,” said Buffett, Berkshire Hathaway CEO. “Duracell is a leading global brand with top quality products, and it will fit well within Berkshire Hathaway.”
“We thank the Duracell employees for their many contributions to the business. They’ve made Duracell the global market leader in the battery category,” added A.G. Lafley, P&G CEO. “I’m confident this new ownership structure will provide strong support for Duracell’s future growth plans.”
P&G announced in late October that it was looking to exit the Duracell business as it works to restructure its portfolio. In July, P&G divested its pet business to Mars, Inc.
As part of the exit of the battery business, P&G closed the sale of its interest in a China-based battery joint venture earlier in the week.
Based on the signing of the contract to exit the Duracell business, P&G will restate batteries results to discontinued operations effective with the reporting of October-December 2014 quarterly results. P&G expects to restate earnings per share of approximately 12 cents to 14 cents to discontinued operations for fiscal year 2014. All-in GAAP earnings per share are not affected by the restatements.
P&G will incur a non-core, non-cash charge of approximately 28 cents per share in current quarter results to adjust Duracell goodwill and intangible assets to the expected after-tax transaction value.
MinuteClinic makes foray in Wisconsin
WOONSOCKET, R.I. — The first MinuteClinic walk-in medical clinics have opened in Wisconsin inside four CVS/pharmacy stores in Milwaukee, Menomonee Falls and Waukesha, CVS Health has announced. MinuteClinic expects to open a fifth location in Whitefish Bay in December and clinics in Fox Point and Kenosha in early 2015.
"We face a significant shortage in primary care providers, an aging Baby Boomer population and the addition of millions of newly insured patients through the Affordable Care Act," said Andrew Sussman, MinuteClinic president and CVS Health SVP/associate chief medical officer. "By increasing access to high quality, affordable care at convenient clinic locations, MinuteClinic can help support the primary care medical home in Wisconsin."
MinuteClinic launched the first retail medical clinics in the United States in 2000 and is the largest provider of retail clinics with 939 locations in 31 states and the District of Columbia. MinuteClinic also has affiliations with 47 health systems around the country, with joint clinical programs and integration of electronic medical records.