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Gillette sells White Rain
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March 23, 2000: 5:42 p.m. ET
Shampoo in family for nearly 50 years not global enough for Gillette
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NEW YORK (CNNfn) - The Gillette Co. announced Thursday that it is selling its White Rain and other hair-care brands to concentrate on more global products.
Diamond Products Co. is buying White Rain, Adorn, Dippity-Do, Mindk Difference, Tame, The Dry Look, Toni, and other brands, which generate sales of about $110 million annually. Diamond will also take possession of Gillette's St. Paul Manufacturing Center. The deal is expected to be completed within the first two weeks of April.
Gillette Corporate Communications VP Eric Kraus said that White Rain, which was introduced in 1951, and the other products no longer fit into Gillette's global, premium price corporate strategy.
"We have never ventured globally into hair care," Kraus said. "And our whole enterprise is on a global basis."
Kraus added that White Rain is a value shampoo and Gillette (G: Research, Estimates) wants to concentrate on premium-priced, standard-setting brands.
"We are very excited about our impending acquisition of the St. Paul Manufacturing Center because it will enable us to expand our packaging capabilities," Diamond President Thayer Smith said in a statement.
Gillette shares closed up 1/4 at 35-7/16 on the New York Stock Exchange. 
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Gillette
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