After 45 years of being in Procter & Gamble Co.'s pantry, the Cincinnati-based giant might spin off, instead of sell, its Folgers coffee business, according to reports on the Web sites of the Financial Times and The Wall Street Journal that cited unidentified sources.
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P&G, which announced in August it would explore sales of slow-growth brands, reportedly is interested in a spinoff for tax reasons. The company did not list which brands were on the block, but The Daily Deal's Lisa Gewirtz-Ward identified Braun appliances, Duracell batteries, Folgers and Pringles chips among the most likely to go. The report of a possible spinoff shouldn't surprise readers of The Daily Deal, because when the August review was announced, Gewirtz-Ward noted that P&G may have difficulty selling the assets because private equity buyers were waylayed by the credit crunch and there were few strategic bidders interested in the rumored assets.
Additionally, it's worth noting that whenever P&G cleans its closets, Folgers and Pringles are listed as likely auction block candidates. For example, in 2005, after P&G acquired Gillette, The Daily Deal reported both brands were on a short list of possible divestitures -- obviously they were spared.
More recently, P&G sold in 2006 Sure deodorant and Pert Plus shampoo brands to Phoenix private equity firm Najafi Cos. - Matthew Wurtzel
See story from The Wall Street Journal
See story from the Financial Times
See story from TheDeal.com: P&G, Unilever to shed assets
See story from TheDeal.com: Najafi to buy Pert shampoo line
See story from TheDeal.com: P&G orphans: Pringles and Folgers
