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Edgewell flags feminine and infant units for review
Posted on Thursday, 07 February 2019 14:47
Feminine and infant care are two business areas put under the spotlight by Edgewell Personal as the personal products manufacturer seeks to shake up its portfolio to refocus on core areas.

The strategic review of options, such as a sale of one or both units, comes after the listed Missouri-based group kicked off an enterprise-wide transformational initiative in the financial year ended 30th September 2018.

Project Fuel incorporates a zero-based spending and global productivity strategy, as well as a restructuring programme, and the majority of the cost savings are expected to take place during FY 2019 through FY 2021.

The overall aim is to refocus the organisation by streamlining ways of working to increase competitiveness, speed and agility, as well as ensuring it has the skills, capabilities and investments needed to compete in a rapidly changing world.

It wants to concentrate on: wet shave, comprising men’s and women’s razors, blades and shaving preparations; and sun and skin care, including brands such as Banana Boat and Hawaiian Tropic, among others.

Edgewell will review a potential sale of one, or both, of its feminine and infant care divisions, but cautioned there is no assurance the evaluation will lead to a corporate action.

The two categories include tampons, pads and liners sold under the Playtex Gentle Glide and Sport, Stayfree, Carefree and o.b. brands, and bottles, cups and nappies (or diapers if you are American).

Edgewell’s feminine and infant divisions generated net sales of USD 329.50 million and of USD 125.10 million, respectively, in FY 2018, representing 14.7 per and 5.6 per cent of the group total of USD 2.23 billion.

The potential sale would add to 16 mergers and acquisitions either announced or completed in 2019 that target the global toilet preparation manufacturing sector, according to Zephyr, the M&A database published by Bureau van Dijk.

At USD 900.00 million, the proposed purchase of Elemis by L’Occitane International is currently the largest by value.

© Zephus Ltd