• Bloomberg, Tuesday, February 21, 2006 11:16 AM

Two of Procter & Gamble's leading deodorant brands, Right Guard and Soft & Dri, have been acquired by German marketer Henkel KGaA for about $420 million, the companies announced. The move makes Henkel the third-largest deodorant maker in the U.S. In 2005, the two brands had sales of $275 million. ''This will strengthen Henkel's scale in personal care in the U.S. as well as globally, an area of weakness for the group,'' said Andy Smith, head of Citigroup's European consumer- staples research group. P&G was required to sell the products as part of an agreement with the U.S. Federal Trade Commission after the $57 billion purchase of Gillette Co. last year. Henkel, based in the western German city of Dusseldorf, has added to its stable of U.S. brands over the past two years by acquiring Dial Corp. for $2.9 billion and Clorox Co. products such as Soft Scrub cleanser and Combat pest control.

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