FYI: Collgate Bought Toms of Maine last month (April 2006)

Colgate Buys Tom's Of Maine For $100M

NEW YORK, March 21, 2006 (AP / CBS)

(AP) Consumer products maker Colgate-Palmolive Co. said Tuesday it agreed to purchase control of the privately held Tom's of Maine, which makes "natural" toothpaste and other personal care products, for $100 million in cash.

The deal reflects Colgate's strategy of focusing on the higher-margin oral and personal care businesses.

Colgate said the deal for 84 percent of Tom's is expected to close in the second quarter. The Chappell family that founded Tom's of Maine will keep a 16 percent stake in the company. Colgate will have additional share purchase opportunities over the coming years.

The U.S. market for "natural" oral and personal care products is valued at $3 billion and is growing by 15 percent per year, Colgate said.

Tom's of Maine, founded in 1970 by Tom and Kate Chappell, pioneered natural toothpaste, mouthwash, and deodorant, and is a leading oral care brand in its category.

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