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Pilgrims Pride appoints Fabio Sandry CFO8/4/2011
Pilgrims Pride appoints Fabio Sandry CFO
Pilgrim's Pride Corporation has appointed Fabio Sandri as chief financial officer of the company, effective immediately. Sandri succeeds Gary D. Tucker, who announced his retirement after eight years with the company, most recently as principal financial officer and chief accounting officer.
Sandri previously served as chief financial officer of Estacio Participacoes, the largest private post-secondary educational institution in Brazil, a post he had held since April 2010. Prior to that, he spent nearly two years as the chief financial officer of Imbra SA, a provider of dental services based in Sao Paolo, Brazil. From 2005 to 2008, Sandri served as strategy director and corporate controller for Braskem S.A., a New York Stock Exchange-listed petrochemical company headquartered in Camacari, Brazil.
CGT pays tribute to P&G supply chain chief Keith Harrison8/4/2011
CGT pays tribute to P&G supply chain chief Keith Harrison
Being a visionary in the consumer goods (CG) industry is all about seeing the big picture. The job title comes with a long list of requirements, like setting long-term goals and direction, getting buy-in from leadership and employees, and so on. Each year, CGT honors a small group of industry thought leaders who not only see the big picture, but have executed business and technology initiatives that will help their companies to paint it. For this reason we call them “visionary”. The 10 executives profiled this year were selected from a pool of more than 50 glowing reader nominations that explained how each challenged the boundaries of their organization — whether it be a Fortune 500 firm or an innovative mid-market company. Here, CGT’s 2011 Visionaries reveal their biggest wins in the past year and the changes they have in store for their respective companies. First up, a farewell tribute to one of the biggest CG industry visionaries of all time: P&G’s Keith Harrison, who will retire this year.
Keith HarrisonGlobal Product Supply OfficerSupply chain visionary Keith Harrison will enter retirement at the end of August after a long and very successful 41-year career with The Procter & Gamble Company. As an industry that has been impacted greatly by his many accomplishments, we would be remiss if we let him go without paying proper tribute for leading one of the largest product supply organizations in the world.In his current role as Global Product Supply Officer, Harrison directs a supply chain organization with more than 70,000 employees worldwide — that’s more than half of the enrollment of the total company.Throughout his career, he went by many other titles, from Team Manager at a Pennsylvania plant (1970) to Brand Manager (1984) to Vice President-Product Supply for P&G Europe (1991) and so on. In each position, Harrison played an instrumental part in P&G’s long history of supply chain innovation.He was one of the first to understand the changing nature of the CG industry, including an amplified need to respond to shortened innovation cycles as well as supply chain agility to provide growth in competitive market conditions. In line with that theory, he took P&G’s Integrated Work System design to new heights — leveraging the past but providing an external view and agility that is now the standard in today’s global supply chains.Harrison continued to build a legacy with the development of an “outside in” focus to the supply chain. This came to be known within P&G as Consumer-Driven Supply Networks and externally as Demand-Driven Supply Networks.He’s stretched the boundaries of a traditional supply chain organization over the past five years to include collaboration between the Product Supply and Research & Development organizations via a “Seamless Technical Community”. And he applied this same logic to culturally shift the Product Supply organization to be shopper and customer-centric in design and approach. Under his watch, the supply chain organization has delivered high service levels as well as more than $4 billion in cost savings and $1 billion in incremental cash and Net Outside Sales.His impact goes far beyond process and technology as he is an active champion of diversity, multi-ethnicity leadership development and sustainability.P&G Chairman of the Board, Chief Executive Officer and President Bob McDonald says Harrison’s “passion and vision to create an industry leading supply organization has been instrumental in the company achieving its goals for both growth and global expansion. His impact at P&G has been significant and his contributions will continue to serve the business well into the future.”Here, Harrison shares career highlights, retirement plans and words of wisdom for future visionaries:CGT: Looking back on your career, what do you consider your biggest accomplishment?Harrison: Looking back over my 40-plus year career with P&G, I think the results I achieved in my current role are what I feel best about. During my tenure, the size of P&G doubled, our global footprint expanded dramatically, we’ve taken billions out of cost and cash, and we’ve created a supply network that’s world class, offering the company a demonstrable, competitive advantage. I’d like to think that’s my legacy.CGT: Looking ahead, what will be the biggest CG industry challenge over the next three to five years?Harrison: Generating growth in a world of flat markets, commodity increases and unpredictability. My advice to business leaders is to create an organization that is agile, resilient (a term we don’t normally use), and driven by principles and vision, which will be increasingly important in the volatile environment we’re likely to face.CGT: Whom do you admire most in business?Harrison: If I had to pick just one, it would be A.G. Lafley, the former CEO of P&G. A.G. became CEO when P&G was in a very difficult situation, and he provided focus, clear strategic direction and an energizing, engaging leadership style, all of which were a big part of the terrific results that P&G achieved during his tenure.CGT: What are you most looking forward to during retirement?Harrison: I’m looking forward to having time to determine where I want to invest my passion, energy and knowledge as I develop this next phase of my career. I want to stay active in the business world, likely through some board work, but I have a number of hobbies and interests that I want to explore as well.CGT: Can you share one parting piece of advice?Harrison: One of P&G’s plant sites in Asia coined the phrase, “Today’s best will not be good enough for tomorrow”. I think this nicely sums up the need for continued improvement across the board.Takeda to Acquire Nycomed5/19/2011
Takeda to Acquire Nycomed
Takeda to Acquire Nycomed
Takeda Pharmaceutical Company Limited (“Takeda”, TSE: 4502) and Nycomed A/S (“Nycomed”) jointly announced today that Takeda has reached an agreement with the shareholders of Nycomed in which Takeda will acquire the Zurich-headquartered company for 9.6 billion Euro on a cash-free, debt-free basis. The boards of directors of each company unanimously approved the transaction which is expected to be completed within 90 to 120 days, making it a wholly owned subsidiary of Takeda, subject to antitrust clearance. The purchase would exclude Nycomed’s U.S. dermatology business.The sellers are comprised of a consortium of private equity funds led by Nordic Capital Funds V and VI (“Nordic Capital”), including DLJ Merchant Banking Partners (a Credit Suisse affiliate), Coller International Partners IV and V, and Avista Capital Partners.This transformational transaction is a strategic fit with Takeda’s sustainable growth strategy as it was outlined in its 2011–2013 Mid-Range Plan. Takeda has its strong presence in the Japanese and U.S. markets, while Nycomed has a significant business infrastructure in Europe and high-growth emerging markets that will enhance Takeda’s regulatory development expertise and commercialization capability. The acquisition includes the roflumilast franchise (Daxas®; trade name in Europe), a first-in-class treatment for chronic obstructive pulmonary disease (COPD), which is expected to be a major source of revenue growth for Takeda. In addition, the acquisition will bring Takeda an immediate and stable increase in cash flow with Nycomed’s more than 2.8 billion Euro in annual revenue, excluding the U.S. Dermatology business.“Takeda is committed to transforming our organization through the acquisition of Nycomed. Nycomed enables Takeda to maximize the value of our portfolio and gives us an immediate strong presence in the high-growth emerging markets while doubling Takeda’s European sales,” said Yasuchika Hasegawa, President & CEO of Takeda. “Nycomed’s strength in a geographically wide range of markets and its diverse talent base will be a strong driver to helping us realize our important mission of striving toward better health for patients worldwide through leading innovation in medicine.”Nycomed, headquartered in Zurich, Switzerland, is a privately-owned pharmaceutical company with strong presence in Europe and emerging markets. Nycomed’s diversified product portfolio includes both established prescription pharmaceutical products as a primary revenue driver, and over the counter (OTC) products. It has a strong European commercial network and is aggressively growing in emerging markets which account for more than 50 percent of global pharmaceutical growth. Its key success factors include the utilization of its broad product range and the application of commercialization and development strategies that fit with the market environment and medical needs in each individual country and region.“The combination of Takeda’s successful track record of innovation with Nycomed’s efficient commercialization and manufacturing infrastructure will create a global player with a phenomenal ability to bring medicines to patients and healthcare providers around the world,” said Håkan Björklund, Chief Executive Officer of Nycomed.Through the addition of Nycomed’s remarkable entrepreneurial corporate culture to Takeda’s corporate culture, nurtured for more than two centuries, Takeda is aiming to become a truly global pharmaceutical company with a diversified talent base capable of conducting global business effectively.Since being acquired by Nordic Capital along with co-investors in 2005, Nycomed has followed an aggressive growth strategy that has propelled the company to an international player with a broad and strong market presence.“The investment in Nycomed has outperformed even the highest expectations. We are proud to have contributed to Nycomed's development into a world-class pharmaceutical company with a strong market position and product pipeline. I feel confident that Takeda will be able to further build upon Nycomed’s potential and create an even stronger company with a global market presence,” said Kristoffer Melinder, Managing Partner of NC Advisory AB, advisor to the Nordic Capital funds.1. Expected benefits• Strong fit with Takeda’s sustainable growth strategy
- Strengthens pan-European platform
- Leverages Nycomed’s emerging markets strength to drive growth
- Allows Takeda to maximize the value of its portfolio supported by enhanced development expertise and commercialization capability in Europe and emerging markets
- Provides a significant growth driver with roflumilast (Daxas® tradename in Europe)
• Immediate financial contribution(*)
- More than 30% increase of annual revenue
- More than 40% increase of operating income (excluding special factors derived from business acquisition)
- More than 30% increase of EPS (excluding special factors derived from business acquisition)
(*) Comparison with the original outlook of fiscal 2013 in 2011-2013 Mid-Range Plan, announced on May 11, 2011
• Complementary cultures and diverse talent pool
2. Acquisition summary(1) Acquiring company: Takeda Pharmaceutical Company Limited
(2) Shareholders of Nycomed include Nordic Capital Funds V and VI, DLJ Merchant Banking Partners (a Credit Suisse affiliate), Coller International Partners IV and V, and Avista Capital Partners, Nycomed’s management and employees team
(3) Number of outstanding shares: 13,778,110 shares (as of December 31, 2010)
(4) Payment: Cash (Takeda will finance part of the transaction through a loan for about 600 to 700 billion yen)
(5) Acquisition amount: 9.6 billion Euro inclusive of the Nycomed’s net debt
(Fairness opinions from both Deutsche Securities Inc. and Nomura Securities Co., Ltd. have been obtained.)
(6) Planned date of completion: End of September 2011
Note: Shares of Nycomed US Inc., which focuses on specialty pharmaceuticals in dermatology, are excluded from the share purchase agreement.3. About Nycomed(1) Corporate name: Nycomed A/S
(2) Headquarters: Zurich, Switzerland
(3) Representative: Håkan Björklund (CEO)
(4) Established: 2005 (Operation started in 1874)
(5) Capital stock: 98,836 Euro
(6) Shares: non-listed ordinary shares
(7) Fiscal year: End of December
(8) No. of employees: approximately 12,500 (including Nycomed US)
(9) Relationship with Takeda: no matters to report regarding capital, personal and transactional relationship with Takeda
(10) Financial performance of the Nycomed Group for the recent two years
including Nycomed U.S. (unit: million Euro)Fiscal year 2010Fiscal year 2009Net turnover3,170.63,228.0Gross profit Margin2,181.72,332.7Operating profit-44.2288.0Net profit-229.1232.7EBITDA after adjustment(*)850.51,074.6Total assets7,4777,886Net assets1,4911,539(*) After adjustment of the difference such as those derived from evaluation of
inventories in accordance with “Accounting Standard for Business Combinations”
EBITDA: earnings before interest, taxes, depreciation, and amortizationTakeda will announce the financial impact which this transaction will have on its consolidated financial statements of its fiscal year 2011 together with the revised financial outlook of the year.Hershey CEO, David West departing to Del Monte5/19/2011
Hershey CEO, David West departing to Del Monte
Hershey Co.'s chief executive, David J. West, is departing for a considerably smaller and arguably less glamorous company but one that could provide a bigger payday down the road.
Mr. West will be taking the helm of Del Monte Foods Co., whose products include Contadina tomato paste and Meow Mix cat food as well as its namesake canned fruits and vegetables. The company was bought in March by private-equity firms KKR & Co., Vestar Capital Partners and Centerview Capital LP.
Merck Completes Acquisition of Inspire Pharmaceuticals, Inc.5/16/2011
Merck Completes Acquisition of Inspire Pharmaceuticals, Inc.
Merck Completes Acquisition of Inspire Pharmaceuticals, Inc.
Merck (NYSE:MRK), known as MSD outside the United States and Canada, announced today that it is has completed its acquisition of Inspire Pharmaceuticals, Inc., a specialty pharmaceutical company focused on developing and commercializing ophthalmic products, for $5.00 per share in cash.“The successful completion of this transaction strengthens our ophthalmology business and positions us for future growth with an expanded portfolio and a best in class commercialization organization.”“We are excited to complete this compelling and highly complementary acquisition of Inspire,” said Beverly Lybrand, senior vice president and general manager, neuroscience and ophthalmology, Merck. “The successful completion of this transaction strengthens our ophthalmology business and positions us for future growth with an expanded portfolio and a best in class commercialization organization.”Kraft Foods Brews Gevalia For Starbucks Rivalry4/15/2011
Kraft Foods Brews Gevalia For Starbucks Rivalry
Kraft Foods Brews Gevalia For Starbucks Rivalry
Kraft Foods Inc.'s Gevalia coffee will go head-to-head with its onetime partner Starbucks Corp. in supermarkets starting in August.Kraft plans to sell Gevalia as its premium coffee brand at more than 20,000 retailers, marking the first time the nearly 160-year-old Swedish coffee brand, which has been primarily sold in the U.S. through online and mail orders for the past quarter-century, will be available at American stores.Gevalia will replace Starbucks as Kraft's entrant in the premium-coffee category. Kraft had exclusively sold Starbucks products in the high-end coffee category until March 1, when their distribution pact was dissolved in what became a messy and public divorce in court. The two sides are still involved in arbitration over the breakup, and whether Starbucks may have to pay Kraft more than $1 billion for terminating the pact.Now, much as the two consumer-products giants faced off in court over the breakup, Kraft and Starbucks are setting up to become fierce competitors in the estimated $4.1 billion U.S. market for packaged coffee.Reckitt Benckiser CEO Bart Becht steps down to be replaced by Rakesh Kapoor4/15/2011
Reckitt Benckiser CEO Bart Becht steps down to be replaced by Rakesh Kapoor
Reckitt Benckiser CEO Bart Becht steps down to be replaced by Rakesh Kapoor
After spending more than a decade building Reckitt Benckiser Group PLC into a household-products powerhouse, Chief Executive Bart Becht said he will retire later this year. The news surprised shareholders and drove the company's shares down 7.5%.View Full ImageDeparting Reckitt CEO Bart Becht will stay on as a part-time adviser until September 2012 to help ensure a smooth transition.Reckitt, the U.K.-based company behind products like Lysol, Woolite and French's mustard, said Thursday that Mr. Becht, 54 years old, would step down on Sept. 1 and hand the top job to Rakesh Kapoor, 52, executive vice president of global category development. The move comes less than six months after Reckitt announced that its chief financial officer, Colin Day, would depart after more than 10 years on the job. Mr. Day left the company last month.The result is uncertainty about Reckitt's upper ranks for shareholders. Reckitt will essentially be in the hands of a new chief executive and finance chief for the first time since it was formed. Messrs. Becht and Day had run the company since it was born out of a 1999 merger between Reckitt & Colman PLC and Benckiser NV. Since then, the share price has grown from about 600 pence to more than 3,000 pence, or about $50, making it one of the FTSE 100's best-performing companies.For years, Reckitt consistently posted sales growth that was as much as double the industry average, in part by focusing on niche segments and rolling out new product innovations. Its portfolio has come to include all manner of lucrative, if unglamorous products, such as Clearasil acne cream, d-Con mousetraps, Harpic toilet cleaner and Veet hair remover.Reckitt "has been driven by the star CEO/CFO team for a decade and, of course, investors should be worried by the departure of two of them within 12 months," Andrew Wood, senior analyst at Sanford C. Bernstein & Co., said in a note Thursday. Bernstein has retained its "outperform" rating on the stock.Heard on the StreetThe worry was visible in the market Thursday. In London, Reckitt's shares fell 251 pence, or 7.5%, to 3,115 pence. Reckitt's steep decline sliced roughly $3 billion off the company's value, which now totals $37 billion.Mr. Becht, who is Dutch, will stay on as a part-time adviser until September 2012 to ensure a smooth transition. He became CEO of Benckiser in 1995 and later took the helm of the merged company in 1999. He has also worked at Procter & Gamble Co."I've been doing this for 16 years. Sixteen years is a long time," Mr. Becht said Thursday. "I think I deserve a change, a new challenge, a new intellectual challenge, and I think the company deserves a fresh leader."Mr. Becht said there was "no chance" he would join a competitor and ruled out the possibility of taking another full-time executive position. He said he planned to stay active in the corporate world and work on charitable causes.The departing CEO will walk away from Reckitt a very wealthy man. He took home £18.91 million ($30.76 million) in 2010 and more than £92 million in 2009, including base pay, bonuses and exercised share options. He has transferred at least £114 million of his money to a charitable trust.Mr. Kapoor has been at the company since 1987, when he joined Reckitt & Colman in India, but is relatively unknown to the company's investors. He ran the company's operation in the U.K., Ireland and Scandinavia from 2001 to 2006. Reckitt's new finance chief, Liz Doherty, a former Unilever PLC and Tesco PLC executive, will be at the helm alongside Mr. Kapoor.Adrian Bellamy, Reckitt's chairman, said he expected Mr. Kapoor to continue with a similar strategy as Mr. Becht's. "He certainly has not indicated to the board that he plans to do a sharp right or a sharp left turn," he said. The board didn't conduct an external search. It was deemed unnecessary, Mr. Bellamy said.Mr. Bellamy said the board was prepared because it discusses succession twice a year at least and had identified Mr. Kapoor as a prime CEO candidate some time ago.Mr. Kapoor faces the challenge of returning Reckitt to its stellar growth record after the economic downturn. Organic sales growth in the company's core businesses averaged 7.3% from 2000 to 2008, but slid to 5.5% in 2009 and 4.5% in 2010, according to Bernstein.He also faces the task of integrating Durex-condom maker SSL International PLC, which Reckitt agreed to purchase last year for $3.88 billion, and Indian ointment and medicine company Paras Pharmaceuticals. Those acquisitions will continue the company's push into the lucrative over-the-counter health-care market.Investec Securities downgraded Reckitt's stock to "sell" from "hold" on news of Mr. Becht's departure. "For us, it's hard to overstate his impact and we think Reckitt now faces an uncertain future," analyst Martin Deboo said.Hunt Executive Search continues to expand footprint with new partner in South Korea4/5/2011
Hunt Executive Search continues to expand footprint with new partner in South Korea
Hunt Executive Search continues to expand footprint with new partner in South Korea
Hunt Executive Search and IRC Global Executive Search Partners (IRC), an alliance of independent executive search firms and a market leader in the global executive search industry, welcomes South Korea-based Honors Career International as a new member firm.
“IRC clients know they have access to personalized local and global executive recruitment expertise, wherever in the world they plan to recruit – which increasingly includes countries such as Korea and China,” says Sylvia MacArthur, president of the IRC Executive Board. “Honors Career International’s expertise in the South Korean market means IRC’s global clients have an extra edge in a challenging recruitment market.”
Chris Kim, Honors Career International CEO, explains why she is delighted to be part of the IRC alliance: “Many Korean companies want to globalize their business – some conglomerates are very active in market expansion. They already have global branches, so they are very keen to recruit top talent in each geographic market, and therefore, are excellent prospective clients for the IRC global alliance. And, we can broaden our own global network and, therefore, our marketing reach for local Korean clients.”
Founded in 2002, Honors Career International is based at the Korea World Trade Center, in Seoul, South Korea. The firm specializes in searches for middle management to executive-level talents for multinational companies with industry focus on healthcare, technology, chemical and energy, FMCG, and finance and banking. “We want to balance the business in our four focus areas,“ explains Chris. “We are concentrating more on technology and health care. These fields are especially important because Korea has a strong basis of world-class high-tech industry such as semiconductor, IT and telecommunications, automotive, shipbuilding, plant engineering, and energy. Also, Korea has strong growth potential for advanced pharmaceutical and health products.”
Chris explains that recruitment challenges for international companies coming into Korea include language barriers (“not many top talents are bilingual”), and competition with major local conglomerates (“young Korean professionals prefer local conglomerates with better benefit packages and long-term job security – and no language barriers”), so foreign companies need to offer better working conditions and better benefits.“There is tremendous growth potential in the South Korean market – and Korean companies that are interested in expanding know they will need top talent,” adds Chris. “Becoming a member of IRC means Honors Career International can now offer global boutique executive recruitment expertise to local and international companies.”
About Hunt Executive Search, Inc.Hunt Executive Search is the preeminent supplier of "A" player human capital to the Consumer Goods, Specialty Chemical, Life Science, Packaging and Professional Service industries.Through retained executive search services for these clients we place executives in CXO, General Management, and EVP/SVP/VP functional leadership in Sales, Marketing, Product Supply, Manufacturing, R&D, Finance and Human Resources.With 70 Offices in 30 Countries ♦ Americas ♦ EMEA ♦ Asia Pacific ♦ and our affiliation with IRC Global Executive Search Partners, we stand ready to serve our clients in virtually any global market with consistent world class levels of service and results."Boutique executive search services with best in class global network, contacts and market mastery."Website: http://www.huntsearch.comDiamond Foods Buying Pringles from P&G for $1.5B4/5/2011
Diamond Foods Buying Pringles from P&G for $1.5B
Diamond Foods Buying Pringles from P&G for $1.5B
Diamond Foods Inc. is acquiring the Pringles potato chip brand from Procter & Gamble Co. in a $1.5 billion stock transaction designed to minimize the tax bite for P&G.The deal, in which Diamond Foods will issue stock to P&G and also assume $850 million in Pringles debt, will more than triple the size of Diamond's snack business.Diamond Foods has been growing rapidly through acquisitions. Last year it doubled in size with another foray into chips, its $615 million acquisition of premium potato-chip maker Kettle Foods. It other brands include Diamond of California and Emerald nuts and Pop Secret popcorn.The share issuance will make P&G the holder of 57% of Diamond's stock.The Kettle acquisition has bolstered Diamond's results in recent quarters, although growth hasn't always been as strong as some analysts expected.Tuesday, Diamond gave a relatively cautious 2012 earnings forecast for its core business, predicting a per-share profit of $2.85 to $2.98, compared with the $2.98 average estimate of analysts polled by Thomson Reuters.Assuming the Pringles deal closes by the end of the current calendar year, it forecast adjusted earnings per share of $3 to $3.10 on $1.8 billion in net sales for its 2012 fiscal year.Pfizer Sells Capsugel Unit to KKR for $2.4 Billion4/4/2011
Pfizer Sells Capsugel Unit to KKR for $2.4 Billion
Pfizer Sells Capsugel Unit to KKR for $2.4 Billion
Kohlberg Kravis Roberts & Co. agreed to acquire Pfizer Inc.'s Capsugel business for $2.38 billion in cash, as the drug giant also disclosed its application to market a treatment for a deadly genetic disease was deemed incomplete by the U.S. Food and Drug Administration.
Like many large pharmaceutical companies, Pfizer is facing generic competition on some of its biggest-selling drugs in coming years and has been adjusting its strategy accordingly. While the company recently completed its $3.6 billion deal for painkiller maker King Pharmaceuticals Inc., analysts have been expecting Pfizer to spin off several of its business units.
Pfizer said in October it was reviewing options for Capsugel, which makes capsules and other drug-delivery systems. Capsugel, which generated abut $750 million in revenue last year, became part of Pfizer through a series of acquisitions. It was originally part of Parke-Davis, a drug maker bought in 1970 by Warner-Lambert, which was then bought by Pfizer in 2000.
Capsugel has manufacturing operations in the U.S., along with similar locations in Europe and Asia, including China and India.
Pfizer also revised its 2011 revenue guidance to $65.2 billion to $67.2 billion from its prior estimate of $66 billion to $68 billion as a result of the deal.
The company plans to expand its share buyback program, assuming the deal closes this year, on top of its current $5 billion share repurchase program.
Meanwhile, Pfizer said it is working with the FDA to resubmit its application quickly and that further clinical studies aren't needed.
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