Nov 19 2002
A non-binding agreement has been reached between The Clorox Company and Proctor and Gamble to establish a joint venture. The joint venture would manufacture food and rubbish bags, containers and wraps under the tradenames Glad, GladWare and other associated trademarks. The agreement is subject to finalisation and execution of a binding agreement and approval by regulatory bodies.
If the joint venture goes ahead, Proctor and Gamble will hold a 10% stake in it, with an option for another 10%. Clorox would own the remainder, as well as the production equipment.
The agreement would see the Glad business grow through the exclusive use of patents, trademarks and other proprietary technologies developed by Proctor and Gamble. They would also contribute 20 full-time employees who would be dedicated to the joint venture. Clorox would in return make available the existing Glad bags, containers and wraps business as well as necessary manufacturing equipment and staff.
Representatives from both parties are excited about the proposition. They see the combination of Clorox’s well established Glad business with Proctor and Gamble’s research and development strengths as a win-win situation.
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