Procter & Gamble Sold Its Soap Brand To Kimberly-Clark de Mexico

Escudo soap brand of Procter & Gamble is sold off to Kimberly-Clark de Mexico as it is restructuring and modifying its product portfolio

Procter & Gamble Co. has been making several changes to its portfolio of products in efforts to restructure and modify it. It has now sold  Escudo Mexican soap brand to Kimberly-Clark de Mexico, which has become a trend for the company.

Escudo is a Mexican soap, which is mostly seen and sold in Latin America, which now belongs to Kimberly instead of the consumer goods company. Procter & Gamble has plans to sell off almost 100 products from its portfolio, thus this is not surprise. It is doing so to restructure, modify and make its business simple at the same time diverse around d the globe.  

The deal between Kimberly and P&G is going to reach completion within the first half of 2016, after all the approvals and documentations have been attained from the Mexican antitrust regulators. The money involved in this deal between the two companies has not been disclosed by either of them.  This recent P&G Brand, Escudo is the latest one to leave the company’s portfolio.

Procter and gamble products being witnessed to be sold to different companies is happening because the consumer company is making efforts to restructure its business and remove weaknesses which come from underperforming products and brands.  The multinational organization is now only keeping products and brands in its portfolio that are powerful and can in no way give it defeat in terms of profit. Before Escudo, Camay, another brand of the company was seen leaving and being sold to another.

Procter and Gamble recently made headlines of reaching a merge with Coty Inc. for almost 43 of its brands.  The new CEO of the company, David Taylor informed that the strategy and business model for this year is to focus on consumer needs and make decision as effectively for the company as possible. Analysts on the other hand are advising the company to separate so that it can make its business bigger and operations larger and even be able to manage them more efficiently.

PG is multinational company and managing it can become a difficult task at certain points, if there is a split analysts believe that regional manager and center would be able to manage and handle the business more efficiently and make decisions quickly. According to the words of the CEO at the press conference, the company is focused on its business in China as it is the world biggest market and economy. By selling off unprofitable brand, PG is hoping to save up to $7 billion by the end of this Fiscal year.

Procter & gamble stock closed at $81.21, going green by 1.15% on March 1, Tuesday.