Procter & Gamble is selling off an adult incontinence brand, Lindor, to a European competitor.
The Hartmann Group, a Heidenheim, Germany-based supplier of medical and hygiene products, said it has inked a deal for the label, which is sold mostly to nursing homes, hospitals and other institutions in Spain and Portugal. The Lindor brand generates roughly $80 million annually.
The deal is expected to close by mid-2017. Financial terms were not disclosed, but the deal includes the transfer of all P&G assets associated with the Lindor product portfolio (Lindor, Salvacamas, Lindor Care, Lindor Pants), intellectual property, contracts with employees and a 270,000-square-foot manufacturing plant in Montornés, Spain.
"With this acquisition, Hartmann will become a major player in the adult incontinence market in Spain and Portugal," said Hartmann CEO Andreas Joehle in a statement.
The adult incontinence market remains important to P&G, which in 2014 launched the Always Discreet brand that is sold by retailers in the U.S., Canada and throughout Europe, including Spain and Portugal.
P&G has sold off more than 100 non-core brands since 2014 in a bid to refocus its business behind roughly 65 labels competing in 10 product categories. Last fall, P&G completed the split off with 41 beauty brands that were immediately merged with New York-based Coty, the maker of Rimmel makeup and Calvin Klein perfume. Also last year, P&G sold the Duracell batteries business to Warren Buffett's Berkshire Hathaway. In 2014, P&G sold its Iams and other pet food businesses to Mars Inc.
Those three major transactions removed nearly 14,000 workers from P&G's payroll and 23 factories from the company's production pipeline. While P&G executives have said they are done with their major brand divestitures, they have indicated the company would continue to scrutinize operations and exit businesses where it no longer makes sense to compete.