Proctor and Gamble (P&G) is to sell its Duracell battery business to Berkshire Hathaway by the second half of 2015, in a deal that will see the FMCG giant receive back $4.7bn in stock owned by the company.
The decision to split from the leading battery brand was announced last month, and forms part of P&G’s plan to streamline its business and axe up to 100 of its brands.
The company previously announced that initial plans for Duracell would be to create it as a separate company which would offer P&G shareholders stock options in the new entity.
The FMCG giant said it now plans to execute a split transaction, in which it will exchange a recapitalised Duracell Company for Berkshire Hathaway’s shares of P&G stock.
“We thank the Duracell employees for their many contributions to the business. They’ve made Duracell the global market leader in the battery category,” said P&G chief executive AG Lafley.
“I’m confident this new ownership structure will provide strong support for Duracell’s future growth plans.”
As part of the exit of the battery business, P&G announced that it closed the sale of its interest in a China-based battery joint venture earlier in the week.
The restructure at P&G will see it focus on its leading 70 to 80 brands, which generate around 90 per cent of the company’s sales and 95 per cent of its profits
