Procter & Gamble, Cincinnati, strengthened its position in the U.S. hair care market and entered the hair coloring segment by striking a deal to acquire New York City-based Clairol from Bristol-Myers Squibb, Stamford, CT, for $4.95 billion in cash. The acquisition is subject to regulatory approval.
Clairol’s annual sales are $1.6 billion, about 75 percent of which are generated in North America; about $700 million of the total comes through such hair coloring brands as Nice ‘n Easy, Natural Instincts, Miss Clairol, and Hydrience, making it the second-largest category player behind L’Oreal.
Clairol’s beauty care brands (which include hair brands Pantene, Pert, Head & Shoulders, and Vidal Sassoon) bring in $7.4 billion annually, most outside North America.
“Clairol brings P&G into the fast-growing business of hair colorants and positions us for further growth in one of our core business categories: hair care,” says P&G ceo A.G. Lafley.
Bristol-Myers placed Clairol on the block last September in order to concentrate on its drug development business.
Visa U.S.A., San Francisco, and telecom giant Sprint, Overland Park, KS, have teamed to jointly develop consumer promotions at Sprint Store retail sites and online through www.sprintpcs.com and www.visa.com. The deal gives Sprint access to more than 344 million Visa cardholders. Ultimately, consumers will be able to make credit-card purchases over the Sprint PCS national wireless network.
Barbie goes high tech under a new licensing agreement between Mattel Toys, El Segundo, CA, and electronics manufacturer Oregon Scientific, Tualatin, OR. The deal will produce a new line of Barbie family products that include the Barbie B-Book laptop ($59.99) and a portable pocket-sized version ($39.99). A third accessory will be the Barbie B-Smart Math & Secrets Bracelet ($24.99).
Anheuser-Busch’s Michelob Light, St. Louis, became the official beer sponsor of Live Broadway, New York City, through 2003. Plans include development of co-branded events such as street festivals, concerts, and special “Fan Fair” programs at Anheuser-Busch theme parks. Michelob Light will also use free tickets to Broadway shows for local radio promotions in 25 markets.
Cingular Wireless, Atlanta, and Sears, Roebuck & Co., Hoffman Estates, IL, became compadres on Sears Fiesta, a mobile tour that will invade 14 cities this summer to make stops at Hispanic festivals and Sears and Cingular stores. Two customized motor homes deliver interactive games, sweepstakes, prizes, and music. “Phone Carriers” dressed in Cingular suits mingle with the crowd, offering free phone calls. A Spin ‘n Win game wheel will give away prizes. Cingular will also hype Mi Ventana Movil, a Hispanic wireless Internet portal. Sears will host local merchandise offers. The Vidal Partnership, New York City, handles.
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