Colgate Purchases Tom’s of Maine

NEW YORK, May 1, 2006  Colgate-Palmolive Company announced the completion of the purchase of 84 percent of Tom's of Maine for approximately $100 million. The agreement to purchase Tom's of Maine, a privately-held, leading Natural Oral Care and Personal Care products company, was signed and announced in March 2006.

The U.S. market for Natural oral and personal care products is valued at $3 billion and is growing at 15 percent per year. Tom’s of Maine, founded in 1970 by Tom and Kate Chappell, pioneered natural toothpaste, mouthwash, and deodorant, and is the #1 Oral Care Brand in the Natural category. Tom’s of Maine gives Colgate the opportunity to enter the fast growing health and specialty trade channel where Tom’s toothpaste is the clear market leader commanding 60% share of that channel. The effect on Colgate’s profits is expected to be neutral in 2006 and increasingly positive each year thereafter. The Chappell family will retain a 16 percent ownership interest, with additional share purchase opportunities for Colgate over the coming years.

Reuben Mark, Colgate’s Chairman and CEO said, “We have great admiration for Tom and Kate Chappell and the values-based business they have created. The combination of Colgate, the global leader in Oral care, and Tom’s of Maine, the leader in the Naturals category, is an exciting partnership with growth opportunities for both companies. And we’re especially pleased that Tom Chappell will remain on to lead the company, which will continue to be based in Kennebunk, Maine.

"Staying here is smart from Colgate's perspective" said Kate Chappell, who founded Tom's with her husband in 1970. "They are respecting the fact that we have a unique approach to creating efficacy with natural ingredients and a total values approach to doing business. The agreement we have worked out succeeds in preserving the character, spirit, and values of our company as we grow."

Tom and Kate Chappell founded Tom's of Maine in 1970, with a $5,000 loan from a friend. The company now employs over 200 people and has annual sales estimated at about $50 million.