PROCTER & GAMBLE CO. $79 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $213.3 billion; Price-to-sales ratio: 2.7; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pg.com) has agreed to sell its Frédéric Fekkai hair care brand and salons for an undisclosed sum.
This sale is part of Procter’s plan to sell 100 of its less profitable brands. Including this deal, it has now sold around 40 brands. It expects to sell the remaining 60 over the next few months. That will still leave Procter with 80 brands that together account for 90% of its sales. The company’s tighter focus will also cut its manufacturing and distribution costs.
Procter & Gamble is a buy.