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    Procter & Gamble Acquires Controlling Interest in Wella

    CINCINNATI and DARMSTADT, Germany - The Procter & Gamble Company on Tuesday said it has signed an agreement to purchase a controlling interest from the majority shareholders of Wella AG, a leading beauty and hair care company headquartered in Darmstadt, Germany.

    CINCINNATI and DARMSTADT, Germany - The Procter & Gamble Company on Tuesday said it has signed an agreement to purchase a controlling interest from the majority shareholders of Wella AG, a leading beauty and hair care company headquartered in Darmstadt, Germany. The cash purchase of euro 3.2 billion ($3.4 billion) gives P&G 77.6 percent of Wella's voting shares.

    The move fits in with P&G's strategy to strengthen its core businesses and focus on higher-growth, higher-margin businesses.

    P&G also announced that it intends to make a tender offer for the remaining voting and preference shares of Wella. P&G will offer a cash price of euro 92.25 per share for the voting shares, and euro 61.50 per share for the preference shares, valuing the total shares at euro 5.4 billion. P&G may, however, offer Wella's preference shareholders the option of accepting P&G shares as an alternative to the cash offer.

    This deal is subject to normal regulatory review and government approvals in various markets including the European Union and the U.S.

    "Wella is with strong brands, excellent management and an organization with deep expertise in the beauty business," said A.G. Lafley, chairman of the board, president and chief executive of P&G. "This acquisition is a great strategic fit given P&G's leadership and proven strength in its core hair care business. The deal further expands P&G's beauty businesses across Eastern and Western Europe, and in Latin America.

    "The P&G and Wella combination is also highly synergistic," he added. "With global geographic scale, we expect to generate significant efficiencies."

    This acquisition is expected to contribute about euro 3.4 billion in sales to P&G's overall beauty business -- approximately euro 1.6 billion in the professional hair care segment; euro 1.0 billion in the retail hair care segment; and euro 800 million in fragrances.

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