A Close Shave at Gillette

The Sale to Procter and Gamble
Author: Sullivan, John D.
Source: Boston University
Year: 2006
Company Name: Gillette
Number of pages: 22

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Abstract:

On 28 February 2005, Gillette employees awoke to the startling news that their company would be sold to Procter and Gamble for an estimated $57 billion. As a result of the merger, 6,000 employees would be cut from the payroll with the majority of the losses coming from Gillette's headquarters in Boston. For the city of Boston, the news of the acquisition was particularly hard to take. In the past year, several large acquisitions had reduced the payrolls in the city or had the promise to do so in the near future. To make matters more interesting, Mr James Kilts, the Chief Executive Officer of Gillette, stood to earn $173 million in cash and stock once the deal closed.