Currently, Clairol is a unit of Bristol-Myers Squibb, which is moving out of consumer products to focus on its drug business.
Demographics are favorable, especially for the coloring segment.
Baby Boomers are graying in droves, creating solid demand for Clairol s hair dyes. Because ever impatient Wall Street is annoyed that the deal will dilute PG s earnings by 6 to 8 cents per share in the first year. However, Procter s top brass assures us the acquisition will boost EPS as soon as the second year a forecast I consider reasonable and perhaps even conservative. I think yesterday s pullback was strictly a short-term phenomenon. All rights reserved.