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OAKLAND, Calif. & CINCINNATI - The Clorox Company and The Procter & Gamble Company on Thursday announced they are planning to establish a joint venture in food and trash bags, containers, and wraps under the Glad, GladWare and related trademarks. The agreement is subject to final negotiations, execution of definitive, binding agreements and government approval.
Under the proposed agreement, the joint venture would have exclusive use of a range of current and future patents, trademarks, and other proprietary technologies developed by P&G that could be used to help drive innovation and growth on the well-established Glad business. Additionally, P&G would make available approximately 20 full-time employees, dedicated to the joint venture with Clorox.
Clorox would contribute the existing Glad bags, containers and wraps business, and would make available the related manufacturing equipment and personnel.
P&G would have a 10 percent interest in the joint venture, with an option to increase its interest by an additional 10 percent. Clorox would own the remainder of the joint venture, as well as assets currently used in the Glad business.
"This joint venture would represent a great opportunity to combine the power of the Glad brand and organization with Procter & Gamble's strong R&D capabilities," said Craig Sullivan, Clorox chairman and CEO. "By collaborating on the many innovative technologies that P&G would bring to the joint venture, we expect to create an exciting stream of future Glad products. Together, we could take the Glad business further -- and do it faster -- than we could without this partnership."
A. G. Lafley, P&G chairman, president and chief executive, said, "We expect the combination of Clorox's well-established Glad business and P&G's R&D expertise would provide consumers with important new products and outstanding value. We look forward to the opportunity to work with the Glad team to bring new innovations to the market."