& Gamble buying Recovery Engineering, maker of PÜR water systems
CINCINNATI (AP) -- Cincinnati-based Procter & Gamble Co. is buying a
manufacturer of drinking water systems in P&G's latest effort to make more money by
getting into new businesses.
P&G plans to buy Minneapolis-based Recovery Engineering Inc., which makes and sells
PUR household drinking water systems and filters, in a $265 million deal to be completed
in October. P&G management said Thursday it will begin, within five business days, an
offer to buy all shares of Recovery Engineering at a price of $35.25 per share in cash.
The boards of directors of both companies have approved the deal. It is subject to the
Federal Trade Commission's review.
Recovery Engineering was founded in 1986. It became publicly owned in 1993 when it sold
stock at $7 per share.
P&G plans to operate Recovery Engineering as part of its health care/corporate new
ventures unit, company spokesman Don Tassone said.
The corporate new ventures unit was formed to direct P&G's efforts to buy into new
business markets. That unit coordinated P&G's $2.05 billion purchase -- announced on
Aug. 11 -- of Iams Co., a pet foods manufacturer.
P&G, a consumer products manufacturer with worldwide sales of $38 billion, is known
for products including Crest toothpaste, Tide detergent and Pampers disposable diapers.