Colgate-Palmolive Co. has agreed to purchase a majority interest in Tom’s of Maine, the leader in the naturals market, for $100 million.
The acquisition, which gives Colgate 84% interest in Tom’s of Maine, is part of its strategy to focus on its higher-margin oral and personal care business, the company said.
Tom’s of Maine is the maker of natural toothpaste, mouthwash and deodorant. Over the years it has grown to be the No. 1 oral care brand in the natural category, valued at $3 billion, the company said.
Tom Chappell, who founded Tom’s of Maine in 1970 with his wife Kate, will continue to lead the company, based in Kennebunk, Maine.
“We chose Colgate as our partner because they have the global expertise to help take Tom’s of Maine to the next level,” Chappell said in a statement.
The Chappell’s will retain a 16% interest in the company, with the opportunity for Colgate to purchase more shares in the future.
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