ACQUIRE - Procter and Gamble buys Native Deodorant for US$100M Cash

Native sells natural deodorant and a million online customers for US$100M Cash

According to a TechCrunch report last week, consumer products giant Procter and Gamble is acquiring Native a natural deodorant brand, for $100 million in cash. San Francisco-based Native initiated business in 2015 and previously raised seed funding from Azure Capital Partners.

According to industry sources,  Procter and  Gamble recently announced they would be transparent about what’s truly in their fragrances by the end of 2019. This is a huge move considering “fragrance” is an umbrella term that can include a myriad of chemicals (which are not legally required to be disclosed).

Industry Analysts estimate the annual sales of Native to be between US$25-30 million per annum.

WHY THIS IS IMPORTANT
Native moved deodorant into a subscription based business. Procter and Gamble's acquisition price does not seem related to free cash flow or revenue. It seems to be more about acquiring an innovative approach to deodorant. In that respect this purchase is not unlike Unilever's earlier purchases of Dollar Shave Club and The Honest Company. Given the high cost and time required to develop a product and a subscriber ecosystem, acquisitions like this one may well become common place. 

Pet Nutrition Assessment Video for Veterinarians

The Canadian Veterinary Medical Association (CVMA) has produced a pet nutrition assessment video. This video is designed to help veterinarians conduct nutrition assessments and share this information with clients. The video was supported by Hill's Pet Nutrition Canada Inc., Procter & Gamble Pet Care, and Purina.

The CVMA is a member of the Pet Nutrition Alliance (PNA). The PNA includes several veterinary organizations that provide global awareness about pet nutrition. The PNA website provides valuable resources for veterinarians and pet owners. Resources for veterinarians include nutrition assessments, communication strategies, nutritional calculators, and feeding guidelines. Pet owners can find information about understanding pet food labels, nutrition myths, and pet food safety.

   

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Spectrum Brands Acquires European Business of Iams and Eukanuba

A business transaction occurred between Spectrum Brands Holdings Inc. and Procter & Gamble. Spectrum has acquired the European business of Iams and Eukanuba from Procter & Gamble. European Iams and Eukanuba have annual sales of approximately $200 million USD.

Dave Lumly, CEO of Spectrum Brands Holdings, said, “The addition of these leading brands in an adjacent category better balances the product portfolio of our global pet business while significantly expanding its product offerings and geographic footprint. We see major cross-selling opportunities given the strength of our existing aquatics and companion animal supplies business in continental Europe and the particularly strong position of these dry pet food brands in the UK. Over the next few years, we also expect important synergies in overhead, SG&A, and manufacturing and distribution.”

The Chairman of the Board of Spectrum Brands Holdings, David Maura said, “I view the Iams and Eukanuba brands as iconic in the specialty pet food category. With this acquisition, we are strategically strengthening our companion animal product portfolio and investing behind our global pet supplies business. We expect this deal to be accretive in year one, but more meaningfully so in the second year, once fully integrated. We welcome the P&G employees to the Spectrum Brands family and look forward to driving this business to an even higher performance level and providing outstanding service to our customers.”

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