* Acquisition marks second high-end purchase this month
* Financial terms of the deal not disclosed
* Shares down 1.8 percent
(Adds P&G and analyst comments, stock move, details, byline)
By Ian Sherr
CHICAGO, June 16 Procter & Gamble Co (PG.N)
said on Tuesday it has acquired skin-care company Zirh, adding
another high-end brand geared toward men to its lineup.
Terms of the deal, the company's second men's grooming
acquisition in less than two weeks, were not disclosed.
With the Zirh line, which boasts the highest-grade
botanicals in its products, P&G is increasing its already
strong foothold in the male grooming market, adding to its
Gillette, Old Spice and Braun brands.
"Right now, Zirh is a relatively small brand," said P&G
spokeswoman Kelly Vanasse. "We fully expect it to grow, and
That growth is not toward the mass market either, said
Connie Maneaty of BMO Capital Markets.
"The opportunity is in broader male grooming products," she
said. "I think this is a strategy to develop male grooming more
in department stores for people who shop there."
Historically, most P&G products have been sold in mass
retail outlets such as Wal-Mart (WMT.N) and drugstores
including CVS (CVS.N).
P&G said that for now, Zirh -- which markets itself as
using only natural oils and extracts and never testing on
animals -- would maintain its brand and keep selling products
through its own website.
Founded in 1995 in New York, Zirh sells men's skin care and
shaving products, including $15 shaving creams, as well as
deodorants, and moisturizers. Its products are typically sold
online or in stores such as Bloomingdale's, Sephora and Macy's
On June 3, P&G acquired The Art of Shaving stores, another
high-end line geared toward men. [ID:nN03115197].
Both acquisitions were likely small ones for P&G, which
paid about $57 billion for shaving products leader Gillette Co
in 2005. And Women's Wear Daily, citing industry experts,
reported that P&G likely paid around $60 million for The Art of
Shaving. P&G has so far declined to give a figure or detail any
terms of the two recent deals.
Shares of P&G fell 1.8 percent to $50.40 in early afternoon
(Reporting by Ian Sherr, additional reporting by Jessica Wohl;
Editing by Maureen Bavdek and Gunna Dickson )