Thanks Star, I see the news now.
NEW YORK, Sept 13 (Reuters) - Tupperware Corp. <TUP.N>
said on Wednesday it planned to acquire BeautiControl Inc.
<BUTI.O> for $7 per share, or $60 million, to add beauty
products to its line of plastic household goods.
Tupperware Chief Executive Rick Goings, who previously
worked for Avon Products Inc. <AVP.N>, said he was interested
in adding a beauty component to Tupperware's business and
approached BeautiControl a few months ago.
Dallas-based BeautiControl is a direct seller of beauty and
nutritional products with about 50,000 sales representatives,
most of whom are in the U.S.
"We saw them as a jewel in direct selling," Goings told
Reuters. "They'll bring us consumable products and dynamic
growth." He also said he hoped BeautiControl would give
Tupperware a stronger foothold in the U.S.
Eighty-five percent of Tupperware sales come from outside
of the U.S.
Orlando, Fla.-based Tupperware does not plan more
acquisitions immediately, but will fill other holes in the
future.
"This is a first step," Goings said. "We have a vision
for different direct selling concepts, but we want to get this
(BeautiControl) launched first.
Under the terms of the deal, Tupperware will launch a cash
tender offer of $7 per share for the common stock of
Dallas-based BeautiControl. BeautiControl stock last traded at
$3-3/4.
Shareholders owning about 47 percent of BeautiControl
shares have already agreed to tender their shares. Any shares
not purchased at the close of the offer will be acquired for $7
per share in cash in a subsequent merger.
BeautiControl will operate as a separate unit and the
Tupperware and BeautiControl sales forces will not sell one
another's products.
Tupperware has one million sales representatives in 100
countries and markets its products at parties in private homes,
over the Internet, on television shopping channels and in mall
kiosks. It had second quarter sales of $272.6 mln.
Due to the timing of this deal, it is not expected to
affect Tupperware's year 2000 results. The inclusion of
BeautiControl is expected to be mildly dilutive in 2001 and
2002, before adding to earnings in 2003, Tupperware said.
In 1999, BeautiControl had retail sales of $130 million.
Shares of Tupperware closed up 1/16 at $19-15/16 on Wednesday,
off a 52-week high of $24-1/2, up from a year low of $14-9/16.
((New York Newsdesk, (212) 859-1719))
REUTERS
*** end of story *** |
