Proctor and Gamble is a popular firm in the consumer goods business and has a staunch market for its utility products one of the sub ventures which the company used to cater to is Wella which is a range of health care products and services. The company cannot at this stage manage all its ventures thus have decided to sell it to Goldman Sachs. The deal is expected to sum up to 7 billion dollars.
Well basically provides hair care products which are not just used by individuals but also the professional hair acre related people use products of this brand. The company understands the importance and public fame of this venture and thus is looking into all possibilities before it sells the venture off. At this stage it is quite early to govern whether the company would sell Wella off as a whole or would break it into two parts. No final verdict has been observed by the company in this regard so one does not really know what step the company might take in future.
The company seems quite focused in terms of the sales of its venture. The philosophy behind this is quite simple, the company seeks to get away from those brands that are not doing much good for them and eventually focus on such ventures that result in better and streamlined product lines.
As part of their business growth strategy PG is actually working on the restructuring scheme which would allow them to take initiates that result in the streamlining of efforts, they will also cut on jobs, launch new and more innovation based product ranges and also expand operations in those markets which are growing at a steady pace and also cater to evolving emerging markets. P&G currently needs to restructure and that even faster because it is under constant pressure and scrutiny. The stakes of the company were bought by Bill Ackman after which the company is under more pressure to outperform.
The company is selling other popular brands too and in a few years’ time we would see a more refined version of PG.