Colgate Purchases Tom’s of Maine

Looking to get its piece of the “naturals” pie, Colgate-Palmolive Company, New York, NY, purchased Tom’s of Maine, Kennebunk, ME, in late March. Tom’s of Maine, founded over 30 years ago, pioneered natural toothpaste, mouthwash and deodorant, and is the number one oral care brand in the natural category.
According to Colgate, the acquisition gives it an opportunity to enter the fast growing health and specialty trade channel where Tom’s toothpaste is the clear market leader, commanding 60% share of that channel. Ian Cook, Colgate’s president and COO, said, “This acquisition allows Colgate to strongly enter a completely new channel of distribution and establishes us as the only global oral care company in that channel. This bodes well for additional opportunities in other high margin categories such as personal care.”
Tom’s of Maine co-founders, Tom and Kate Chappell, said, “We chose Colgate as our partner because it has the global expertise to help take Tom’s of Maine to the next level. Just as important, we see Colgate as an excellent fit with our own cultural values.” Mr. Chappell will remain on to lead the company, which will continue to be based in Kennebunk.
The transaction will be structured as an all cash acquisition of 84% of the outstanding shares of Tom’s of Maine for an aggregate price of approximately $100 million. The Chappell family will retain a 16% ownership interest, with additional share purchase opportunities for Colgate over the coming years. (For more information on this acquisition, see this issue’s “Word from Wall Street” column on page 24.)