NEW YORK: The Brunswick Group advised longtime client Gillette on its acquisition by Procter & Gamble for approximately $57 billion. The deal, which was announced Friday morning, is the largest acquisition in P&G history.
Brunswick partner Michael Buckley said the deal has been in the work for months, and that Brunswick has been involved since the early stages of the process. P&G did not work with an outside agency on the deal.
"What this does is it creates the world's best consumer products company," Buckley said. "They're going to have 21 separate brands that will have over a billion bucks in sales [each], which is incredible."
P&G paid Gillette in stock, but will buy back some of the stock over the coming 12-18 months. The outcome will be about a 60-40 split between stock and cash.
Gillette chairman James Kilts will be named a vice chairman at P&G. A release said that P&G anticipates about 6,000 layoffs as a result of the deal, which would be roughly 4% of the combined workforce of 140,000.
Eight people from Brunswick worked on the deal, out of both the New York and Washington offices. Buckley said that the acquisition should be finalized in four to seven months.
Asked how he felt, Buckley replied, "Tired, but gratified that Brunswick was chosen for such an important assignment"