US: P&G mulls over brand sale, IPO

PROCTER & Gamble (P&G) was exploring a sale or initial public offering (IPO) of some of its beauty brands in a single deal, people with knowledge of the matter said, in a move that would accelerate its plans to exit up to 100 product lines. P&G was working with its advisers on the plan, the people said, though it had not finalised the details, including which products would be separated. The company might still decide not to follow through with the separation, the people said. The beauty unit includes an array of brands such as Covergirl make-up, SKII skin cream and Herbal Essence shampoo, along with fragrances. It generated $19.5 billion (R234bn) in sales in the year through June, or about 23 percent of total sales of $83bn, according to P&G’s annual report. The sales have flagged in recent years, with 2014’s total for the segment about the same as it was in 2010. – Bloomberg