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Welch's names P&G Vet Matthew Wohl CMO
9/8/2010

Welch's names P&G Vet Matthew Wohl CMO

Welch's names P&G Vet Matthew Wohl CMO

Welch's on Wednesday appointed Matthew Wohl as chief marketing officer.

Wohl joined the grape-based products maker earlier this month. He will help "build new connections with our consumers and further develop Welch's as a trusted partner in health and nutrition," the company said.

Wohl hails from Procter & Gamble's Gillette, where he sent 16 years--most recently as general manager of blade and razor systems innovation. While at Gillette, he oversaw product development, innovation, new product launches and marketing for Mach 3, Fusion and Fusion ProGlide.

Welch's spent $26 million on advertising in 2009, and $14 million through June of this year, excluding online, per the Nielsen Co.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Our clients include large publicly traded multi-nationals, mid-cap, family, and/or private equity-owned companies, wholesalers, and retailers. Our individual industry based practices include consumer goods companies in food and beverage, personal care, household products, over-the-counter pharmaceutical, consumer durables, and packaging services. Our specialty chemicals practice includes companies in coatings, plastics, industrials and adhesives. Our life sciences practice serves companies in bio-technology, medical device, generic, and brand name pharmaceuticals. Through retained executive search services for these clients we have placed executives in top-level positions at C- Suite General Management, Sales, Marketing, Product Supply, Manufacturing, R&D, Finance and Human Resources.

Website: http://www.huntsearch.com
Dean Foods name Joseph Scalzo President
8/24/2010

Dean Foods name Joseph Scalzo President

Less than a year after filling a newly created post of chief operating officer at Dean Foods Co., Joseph Scalzo has been promoted to president, the Dallas-based dairy giant said late Monday.

The promotion continues a rapid rise for Scalzo, 52, who joined Dean in October 2005 as president and chief executive of the company's WhiteWave division.

In his expanded role, Scalzo will oversee Dean Foods' "operational turnaround," the company said, as it drops niche items with weak sales and attempts to boost its name-brand business.

Earlier this month, the nation's largest dairy processor said second-quarter profit fell 30 percent to $44.8 million in the period that ended in June.

Last October, the company promoted Scalzo to COO, making him second in charge to chairman and chief executive Gregg Engles.

Since then, "I have been impressed by his quick and thorough analysis of the business," Engles said in a statement. "Joe has focused on getting us organized around the fewer, bigger initiatives that can extend our low-cost position in a meaningful way."

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Our clients include large publicly traded multi-nationals, mid-cap, family, and/or private equity-owned companies, wholesalers, and retailers. Our individual industry based practices include consumer goods companies in food and beverage, personal care, household products, over-the-counter pharmaceutical, consumer durables, and packaging services. Our specialty chemicals practice includes companies in coatings, plastics, industrials and adhesives. Our life sciences practice serves companies in bio-technology, medical device, generic, and brand name pharmaceuticals. Through retained executive search services for these clients we have placed executives in top-level positions at C- Suite General Management, Sales, Marketing, Product Supply, Manufacturing, R&D, Finance and Human Resources.

Website: http://www.huntsearch.com

Unilever's Acquisition of Sara Lee Detergents Business Faces EU Objections

8/19/2010

Unilever's Acquisition of Sara Lee Detergents Business Faces EU Objections

Unilever's Acquisition of Sara Lee Detergents Business Faces EU Objections

Unilever’s planned acquisition of Sara Lee Corp.’s shower-gel and European detergents business for 1.3 billion euros ($1.67 billion) faces formal objections from the European Union’s antitrust regulator.

The company received a statement of objections from the EU, Paul Matthews, a London-based spokesman for the company, said in an e-mail today. He said the company remains confident that a “positive agreement” can be reached by the end of the year. He declined to comment on what issues the EU raised in the documents, which are confidential.

The European Commission, the 27-nation EU’s antitrust agency, in June extended its review of the transaction saying it “creates significant overlaps in a number of products” such as deodorants, skin cleansers and fabric-care goods. Unilever, the world’s second-largest consumer-goods maker, is seeking to buy the Sara Lee lines to focus further on international brands.

“I presume some small divestments will be needed to get the job done,” said Jon Cox, an analyst at Kepler Capital Markets in Zurich today. He said the EU statement could delay the deal from closing “which delays the contribution to the sales and profitability from the purchase.”

Fourth Quarter

Unilever, the London- and Rotterdam-based maker of Dove soap and Lipton tea, earlier this month said it expected the purchase to be completed in the fourth quarter, later than the third-quarter timeframe previously announced. Amelia Torres, a spokeswoman for the EU antitrust regulator in Brussels, said she couldn’t comment.

Ernesto Duran, a spokesman for Downers Grove, Illinois- based Sara Lee, said while the company hadn’t been contacted by the European Union, it was “aware of the recent developments.”

“We share Unilever’s confidence that a positive agreement can be reached by the end of the year,” he said in an e-mailed statement.

Unilever fell 1.9 percent to close at 21.02 euros in Amsterdam trading.

A statement of objections doesn’t necessarily mean the EU will attempt to block the deal. The EU approved TomTom NV’s purchase of digital-mapping company Tele Atlas NV in 2008 a few months after sending a statement warning that the purchase might violate antitrust rules.

Remedies

Unilever has two weeks to respond in writing to the objections and can ask for an oral hearing to defend the deal. It can still offer remedies to soothe the commission’s concerns, such as selling off units to reduce market share in problem markets.

Paul McGeown, a partner at Hunton & Williams LLP in Brussels, said EU statements, formal charge sheets laying out potential competition worries, are becoming more common during extended merger reviews. He said regulators tend to “throw the kitchen sink” at companies after court rulings urged them to list all concerns.

“I would expect Unilever to put up a robust defense” and argue that supermarkets’ negotiating power makes it hard for consumer-goods makers to raise prices, McGeown said.

Unilever’s Chief Executive Officer Paul Polman last year broke the company’s nine-year streak of avoiding major takeovers with the Sara Lee purchase, which includes more than 90 brands in 19 European countries.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Our clients include large publicly traded multi-nationals, mid-cap, family, and/or private equity-owned companies, wholesalers, and retailers. Our individual industry based practices include consumer goods companies in food and beverage, personal care, household products, over-the-counter pharmaceutical, consumer durables, and packaging services. Our specialty chemicals practice includes companies in coatings, plastics, industrials and adhesives. Our life sciences practice serves companies in bio-technology, medical device, generic, and brand name pharmaceuticals. Through retained executive search services for these clients we have placed executives in top-level positions at C- Suite General Management, Sales, Marketing, Product Supply, Manufacturing, R&D, Finance and Human Resources.

Website: http://www.huntsearch.com

J&J, Kraft Tout Best Corporate Reputation

8/18/2010

J&J, Kraft Tout Best Corporate Reputation

J&J, Kraft Tout Best Corporate Reputation

In a time of unprecedented activism, cynicism and social networking, pubic opinion means a lot to your company's bottom line. A recent national corporate reputation survey from Vision Critical and its public opinion arm Angus Reid Public Opinion took a radical approach to measuring corporate reputations by probing the negatives (like executive compensation, secrecy, greed and arrogance) to give a richer view of which companies are winning the battle for public opinion which are losing and why.

Each of the 54 companies in the survey was evaluated by 800 Americans, from a total of 10,800. An overall reputation ranking is a based on an index scored from 0 to 100 that represents the average associations given to a company based on 15 attributes and 8 personality traits.

The good news for our industry is that U.S. household goods companies won out in battle for public opinion, claiming five of the top 10 spots:

The Top 10

1 Johnson & Johnson

2 Kraft Foods

3 Disney

4 Campbell Soup Company

5 Home Depot

6 Google

7 Procter & Gamble

8 Apple

9 Nestle

10 Microsoft

Johnson & Johnson tops the list of most favorably perceived companies in a top 10 dominated by CPG companies and the big three computing and technology companies. The top 10 all rated favorably on fundamentals, like value, quality and trust and being welcomed into a local community, all signs of well managed companies and good corporate citizens. These companies are not just household names but valued household guests -- their products staples of most American households. Coca-Cola (No. 14), Kimberly-Clark (No. 15), Pepsico (No. 16) placed in the top 20, while no pure play consumer goods companies landed in the bottom half of the list.

The top ranking companies have generally avoided any major recent scandals, reflected by a lack of the most negative label of "idiots" -- the public's shorthand for arrogance, greed and secrecy. However these companies still attracted comment about executive compensation and putting their profits above what is good for the country.

The bottom half of the rankings are dominated by financial services and health insurance companies. Those with the least favorable rankings are ones that have been splashed across our television screens and newspaper front pages -- think BP -- and not for positive reasons. Health insurers, major banks, Toyota, brokerage firms and oil companies are all subject to public opinion backlash.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Menicon appoints new VP of Manufacturing at Lagado
8/12/2010

Menicon Lagado Retained Executive Search Consumer Products, Specialty Chemicals and Life Science. Pharmaceutical Consumer Packaged Goods Medical Device

Menicon appoints new VP of manufacturing at Lagado

Menicon Co, a Japan-based contact lens manufacturer, has appointed Mark Allen as vice president of manufacturing for Lagado, a wholly-owned subsidiary of Menicon America Inc. Allen will report to Menicon America president Jonathan Jacobson.

During his career in medical products, Allen has held key leadership roles in manufacturing, quality assurance, regulatory affairs and research and development.

Over the last three years, Allen has held the position of vice president of quality assurance and regulatory affairs at Bonfils Blood Center, a blood collection, manufacturing, testing and research center located in Denver, Colorado.

Based in Denver, Allen will oversee manufacturing operations of Lagado. He will work closely with Lagado research scientist Bill Hoffman, in brining new contact lens materials to market for custom lens manufacturers.

"The recent acquisition of Lagado marks the latest milestone in Menicon America's strategy to aggressively pursue the US market. I look forward to continuing Lagado's established history of high-quality and innovative products, and I will bring a new emphasis for providing strong technical support for our customers," Allen said.

Menicon global business strategies and operations general manager Jacobson said that the depth of Allen's experience and leadership in guiding world-class operations to manufacture the highest-quality medical devices is a tremendous asset for Lagado and Menicon.

About Hunt Executive Search

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Our clients include large publicly traded multi-nationals, mid-cap, family, and/or private equity-owned companies, wholesalers, and retailers. Our individual industry based practices include consumer goods companies in food and beverage, personal care, household products, over-the-counter pharmaceutical, consumer durables, and packaging services. Our specialty chemicals practice includes companies in coatings, plastics, industrials and adhesives. Our life sciences practice serves companies in bio-technology, medical device, generic, and brand name pharmaceuticals. Through retained executive search services for these clients we have placed executives in top-level positions at C- Suite General Management, Sales, Marketing, Product Supply, Manufacturing, R&D, Finance and Human Resources.

Website: http://www.huntsearch.com

Schwan Foods appoints Jim Clough President

7/27/2010

Schwan Foods appoints Jim Clough President Retained Executive Search Consumer Products, Specialty Chemicals and Life Science. Pharmaceutical Consumer Packaged Goods Medical Device

Schwan Foods appoints Jim Clough President

There’s a management shakeup going on at Schwan Food Co., with two top executives leaving the company in recent weeks and a new one joining the firm.

Mark Jansen, former president of Schwan Food Service, which supplies cafeterias in schools, hospitals and restaurants, is being replaced by Jim Clough, who will join the Marshall-based company Aug. 9.

Jansen is becoming CEO and president of Blue Diamond Growers, a nut-processing cooperative based in Sacramento, Calif. He’d led Schwan’s Food Service unit for about three years.

Clough, meanwhile, was most recently president of Brea, Calif.-based Fresh Start Bakeries North America where he was responsible for sales and 18 manufacturing facilities in North America. He also has worked at Heinz North America, ConAgra Foodsand Bunge Foods Group.

The other Schwan's departure is Scott McNair, who had been president of Schwan’s largest division, Schwan’s Home Service Inc. A company spokesman said that McNair had left Schwan to pursue other interests; McNair couldn’t be reached for comment.

Home Services operates the yellow trucks that deliver frozen foods to customers’ homes. The company is looking for a replacement for McNair; in the meantime, CEO Greg Flack will take a more active role in managing the home services business.

The departure of the two executives is coincidental, said Schwan spokesman Chuck Blomberg.

Privately held Schwan Food had more than $3 billion in revenue in 2009, which was “a highly profitable year for the company,” Blomberg said. The company has about 17,000 employees.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Website: http://www.huntsearch.com

Lion Capital to acuire frozen food company Picard Surgeles for $1.94B

7/25/2010

Lion Capital to acuire frozen food company Picard Surgeles for $1.94B

Lion Capital said Monday it had agreed to buy French frozen-food retailer Picard Surgelés from BC Partners, beating off strong competition from rival buyout firms.

Financial details of the transaction weren't disclosed but people familiar with the situation said earlier that the deal valued Picard at €1.5 billion ($1.94 billion).

BC Partners bought Picard for €1.3 billion in 2004 from Candover. Prior to that it was owned by French supermarket group Carrefour SA. One person said that BC Partners would make twice the cash it put into the acquisition. The deal is expected to complete in the fourth quarter following regulatory approval.

Picard sells a very wide range of product references through a network of 820 retailing outlets. Its range covers all product categories, from starters to desserts and from raw ingredients to prepared meals.

"Throughout the economic cycle, the company has driven consistently strong financial performance by offering a high quality and convenient alternative to fresh food, underpinned by a strong emphasis on product innovation," Lyndon Lea, partner of Lion Capital, said of Picard.

Lion Capital focuses on consumer brands in particular in the food and retailing sectors. Other investments include U.K. cereal brand Weetabix and the Schweppes and Orangina beverage brands. It has also invested in Russian juice producer Nidan and most recently bought a majority stake in Russian Alcohol, the country's largest producer of vodka.

The buyout firm, which just last week lost out to rival Permira to buy Unilever PLC's frozen-foods business made its pre-emptive bid ahead of a final bid deadline Wednesday.

Other private-equity firms bidding for the company included Eurazeo, a France-based buyout firm who was working with the original founders of the business, Bain Capital and CVC Capital Partners.

One person said that Lion Capital hadn't put in the highest bid but that CVC, which was in pole position until Friday, wasn't able to put firm financing in place ahead of Lion Capital's bid over the weekend. A spokesperson for CVC declined to comment.

Execution and deliverability have become key for private equity buyers as the few good assets coming to market have triggered strong competition among buyout funds desperate to offload funds and start investing again after a two-year hiatus.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Website: http://www.huntsearch.com

Philosophy Skin-Care Business for sale at $1 Billion

7/22/2010

Philosophy Skin-Care Business for sale at $1 Billion

Carlyle Group is seeking about $1 billion in a sale of skin-care company Philosophy Inc., three years after acquiring the maker of “Hope in a Jar” moisturizer for half that amount, said three people with knowledge of the plan.

The Washington-based firm hired Goldman Sachs Group Inc. to explore options and may consider an initial public offering if no buyer emerges, said two of the people, who declined to be identified because the sale is private. Carlyle bought Philosophy in March 2007 in a $475 million deal.

Private-equity firms are selling holdings to return profits to investors and convince them to commit money to new deals. Carlyle, which is also exploring the sale of defense and aviation company Arinc Inc. and pipeline company Kinder Morgan Inc., is the most acquisitive buyout firm this year with about $7 billion in announced transactions, three of them in the last two weeks.

The sale process for Philosophy is at an early stage, with calls placed recently to other private-equity firms and cosmetics rivals, the people said.

Christopher Ullman, a spokesman for Carlyle, declined to comment.

Takeovers of cosmetics companies have picked up after last year’s stock market rebound, with 45 deals worth $3.21 billion announced this year, up from 33 deals and $1.01 billion a year earlier, according to data compiled by Bloomberg.

Bare Escentuals

Estee Lauder Cos., the maker of Clinique and Bobbi Brown cosmetics, in May agreed to buy Smashbox Beauty Cosmetics Inc. to target women aged 18 to 35. That followed Shiseido Co.’s acquisition of Bare Escentuals Inc. for about $1.8 billion to expand outside a shrinking domestic market.

U.S. prestige beauty sales, which include makeup, skin care and fragrance products sold at department stores, dropped 6 percent to $8.19 billion in 2009 according to the NPD Group Inc., a market research firm based in Port Washington, New York.

Shiseido’s offer valued Bare Escentuals at 10.36 times earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg. Philosophy had Ebitda of $60 million last year, meaning it would be worth $622 million at the same multiple.

Philosophy’s adjusted Ebitda, which exclude management fees and some other costs, was $42 million in 2008. Bare Escentuals’ Ebitda declined 5.5 percent to $176.9 million in the fiscal year ended Jan. 3, 2010, from the prior period, according to data compiled by Bloomberg.

Skin Peels

Two of the people with knowledge of the sales process said the company may fetch around $800 million.

Philosophy, which makes anti-aging moisturizers, one-minute skin peels, perfumes and lipsticks, was founded in 1996 by skin- care entrepreneur Cristina Carlino. She wanted to bridge the gap between skin-care products offered in doctor’s offices and retail stores. Philosophy retail shops, Sephora, J.C. Penney Co., Nordstrom Inc., Macy’s Inc. and QVC Inc. sell the skin-care brand.

Carlyle used $202.6 million from its fourth U.S. buyout fund to acquire Philosophy. The firm marked that equity investment at 1.25 times cost in the first quarter, according to the investor letter.

Carlyle Partners IV, which holds stakes in companies from Dunkin’ Brands Inc. to The Nielsen Company, has used 97 percent of its $7.8 billion as of the end of the first quarter, according to the letter.

Kinder Morgan

Kinder Morgan, the fund’s biggest investment, is going ahead with a plan to sell shares in an initial public offering, people with knowledge of the process said last week. The Houston-based company, which was taken private in a $22 billion leveraged buyout three years ago by Goldman and Carlyle, held interviews with banks seeking to underwrite the share sale, the people said.

Earlier this month, Carlyle sold medical-care provider Multiplan Inc. to BC Partners Ltd. and Silver Lake Partners, in a transaction valuing the company at $3.1 billion.

Carlyle Partners IV received $50.8 million in dividends from Philosophy during the first quarter of 2010. The company’s debt and equity has dropped to $466.1 million from $475 million at the time of the takeover.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Website: http://www.huntsearch.com

Snack-Food Firms Lance, Snyder's of Hanover to Merge

7/22/2010

Snack-Food Firms Lance, Snyder's of Hanover to Merge

Snack-Food Firms Lance, Snyder's of Hanover to Merge

Snack-food company Lance Inc. said it will combine with pretzel maker Snyder's of Hanover Inc. in a stock-for-stock merger, sending Lance shares soaring Thursday.

Financial terms of the deal weren't disclosed, but the new company, which will be called Snyder's-Lance Inc., will have about $1.6 billion in combined sales and is expected to produce at least $30 million in annual synergies.

Lance shares rose 33% to $21.30 in 4 p.m. trading Thursday on the Nasdaq Stock market, leaving the stock down 19% so far this year.

The company, which is based in Charlotte, N.C., said the deal won't materially affect its 2010 earnings but will help per-share earnings by more than 10% once completed.

Lance added that both Chief Executive David Singer and Chief Financial Officer Rick Puckett would maintain their respective positions, and each company's shareholders will own about 50% of the new company.

Janney Capital Markets analyst Mitchell Pinheiro upgraded Lance's stock to buy from neutral on what he called a "transformational merger," saying the move would help Lance expand its regional business and grow both companies' profiles.

Before the merger, the company had to depend on third-party distributors like Snyder's, a privately held company based in Hanover, Pa., to reach beyond the mid-Atlantic and southeastern regions. That cut into profits and hindered expansion, Mr. Pinheiro said.

"There's a lot of growth here," Mr. Pinheiro said. "By combining with Snyder's, Lance can move into markets where it could not get distribution."

As part of the deal, Lance will also pay its shareholders a one-time dividend of $3.75 a share.

Also Thursday, Lance reported its second-quarter profit rose to $12.3 million, or 38 cents a share, from $9.5 million, or 30 cents a share, a year earlier. Excluding severance and other expenses, per-share earnings increased to 44 cents from 30 cents.

However, revenue fell slightly to $235.4 million from $236.4 million because of higher promotional costs and a decline in sales volume.

Analysts polled by Thomson Reuters had forecast earnings of 27 cents a share on $240.7 million in sales.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Website: http://www.huntsearch.com

Reckitt continues shift into Personal Care with SSL acquisition

7/21/2010

Reckitt continues shift into Personal Care with SSL acquisition

Reckitt continues shift into Personal Care with SSL acquisition

Consumer-products giant Reckitt Benckiser Group PLC is reaching into the bedroom with its $3.88 billion acquisition of SSL International PLC, the producer of Durex, the best-selling condom brand in the world.

Reckitt has built a big business specializing in hundreds of products to deal with stuff people would rather not talk about, many of them decidedly unsexy: Clearasil acne cream, Mucinex decongestant, Veet hair remover, d-Con mouse traps, Harpic toilet-bowl cleaner, Lysol disinfectants and even a drug for kicking heroin addiction.

With the SSL deal, U.K.-based Reckitt will also add to its portfolio Scholl bunion pads and other foot-care products outside the U.S. (The Dr. Scholl's line of products sold in the U.S. is owned by Merck & Co.)

Health and personal care is already Reckitt's largest business, accounting for £2.1 billion ($3.21 billion) of its total £7.75 billion in revenue last year. Reckitt's annual profit climbed 27% to £1.42 billion.

The £2.5 billion SSL deal takes Reckitt further in

to the lucrative market for over-the-counter health-care products, where it has Strepsils cough drops and Gaviscon heartburn treatment. SSL reported a profit of £71.4 million on sales of £802.5 million for the year ended March 31.

"It's a cute, sexy sector," Garry Watts, chief executive of SSL, said in an interview. "It's still growing fast, it enjoys good margins and if you can innovate, you've got consumers who are willing to buy."

Reckitt CEO Bart Becht said the SSL acquisition would provide a "step change" to its health- and personal-care business, increasing the division's revenue by more than 36% and increasing the division's share of total Reckitt sales to one-third.

Mr. Becht said Reckitt would improve margins in the SSL businesses by engineering £100 million a year in cost savings by the end of 2012, thanks to synergies and the benefits of scale.

Reckitt was willing to pay a premium. The offer of £11.71 a share is 45% above SSL's average share price over the six months ended Tuesday.

Sanford C. Bernstein & Co. senior analyst Andrew Wood said the deal makes strategic sense for Reckitt by enhancing its health- and personal-care business. But he added that Reckitt could have sealed the deal for less, had the company acted earlier. "We do wonder why it has taken management so long to make this happen," Mr. Wood said. He noted that SSL shares were trading below £5.50 nine months ago, as opposed to £8.82 at the close of trading Tuesday.

Reckitt has been on a buying spree in the over-the-counter health-care sector in recent years. It bought Boots Healthcare International in 2006 for £1.93 billion, which brought Clearasil, Nurofen and Strepsils into Reckitt's portfolio. The company acquired Adams Respiratory Therapeutics Inc. in 2008 for $2.3 billion, getting Mucinex.

In health care, shoppers will shell out more for trusted brands. "If you've got a sore throat, runny nose or splitting headache, you want something to sort that out for you and you really don't care how much you pay for it," said Julian Hardwick, a Royal Bank of Scotland analyst.

In marketing Durex, London-based SSL in recent years has moved beyond a "safe sex" message to incorporate a "better sex" theme. It has rolled out the Durex Play line of lubricants and has brought vibrators to pharmacy and supermarket shelves. It also has jumped into emerging markets such as China and India.Durex sales increased 4.8% to £293.7 million for the year ended March 31, adjusting for acquisitions and currency fluctuations.

Reckitt, which reports half-year results next week, approached SSL about a month ago, a person familiar with the matter said. SSL had been in talks to buy the Kiwi shoe-polish brand from Sara Lee Corp. , which has been shedding household and personal-care brands, but those talks recently stalled.

The deal comes as Reckitt faces pressure from rival consumer-goods giant Procter & Gamble Co., which has unveiled new products in air fresheners and dishwasher detergent, two of Reckitt's core categories.

Reckitt, which has boasted a track record of strong performance thanks to successful product innovations and a focus on niche product categories, has been slipping in Europe in recent months, in part because of P&G's push. Reckitt's sales in Western Europe have declined since February, according to estimates from Sanford C. Bernstein, and the company has lost market share in a number of crucial categories.

It is possible another bidder such as Merck, could make an offer for SSL. SSL's shares rose 33% Wednesday in London to £11.77, slightly above the £11.71 offer—indicating investors believe a counteroffer is possible. A person close to the deal said that is unlikely. Reckitt shares rose 3.45%, or £1.10, to £33.00.

J.P. Morgan Cazenove and Lazard Ltd. advised SSL. Deutsche Bank AG advised Reckitt. The deal was funded in part by HSBC Holdings PLC.

About Hunt Executive Search, Inc.

Hunt Executive Search, Inc. is the preeminent supplier of "A" Player human capital to the Consumer Products, Specialty Chemicals and Life Sciences industries.

Website: http://www.huntsearch.com

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Welch's names P&G Vet Matthew Wohl CMO

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