Colgate to buy toothpaste maker for $100 million
Colgate to buy toothpaste maker for $100 million
Colgate to buy toothpaste maker for $100 million
The $100 million cash deal for privately owned Tom's of
But founder Tom Chappell said that neither the company's business philosophy nor its quirky toothpaste flavors like fennel, apricot and orange-mango will change.
Colgate, a major rival of Procter & Gamble, said the purchase of 84 percent of the Kennebunk-based business is expected to close in the second quarter. The Chappell family that founded the company will keep a 16 percent stake. Colgate will have additional share purchase opportunities over the coming years.
Chappell said Tom's of Maine, with annual sales of about $50 million, will maintain its product formulas and be managed as a stand-alone subsidiary, much as Colgate's Science Diet pet food line has been. But he said Colgate's financial clout and distribution network will enable his brands to make inroads into national chain stores and grow to their full potential.
The
"The irony is that although we are growing in the high teens and low 20s, it's not enough to meet a demand 10 times the size," Chappell said in an interview. "About 25 percent of Americans are interested in these kinds of products."
Tom's of
He said his toothpaste is "now the number six brand in
The company's operations will stay in
Packaging of Tom's of
His company has long espoused a philosophy of social responsibility and environmental awareness, and longtime customers responded to news of the Colgate acquisition with mixed feelings.
"My first thought was that's consorting with the devil," said Linda Shary of
"But on second thought, it would be great if they could partner and start getting more socially responsible products into the Colgate line."
Another Tom's of
"It's always a little bit sad when these Maine-based companies are bought out by national companies," Malin said. "But it could be a good thing because the more that American consumers know about and purchase natural and organic products, the better the world will become."
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