With the latest agreement with Argentine home appliance company Newsan, P&G officially withdrew from the Argentine market. Newsan will take over P&G's St. Louis facility and take control of P&G's portfolio of market-leading brands in Argentina, including Gillette, Pampers, Always and Pantene.
In a statement, the two companies noted: The exclusive licensing distribution agreement also involves Newsan's purchase of full ownership of P&G Argentina and the acquisition of the Villa Mercedes plant and Monro headquarters, The Villa Mercedes plant will continue to manufacture nappies and feminine care wipes under the Pampers and Always brands, respectively, under a commissioned production agreement. Similarly, Newsan will retain all P&G employees in Argentina, ensure that P&G's existing operations in Argentina are operating properly and continue to drive the long-term growth of the business.
The completion of the deal marks Procter & Gamble's complete departure from the Argentine market. P&g set up shop in Argentina in the 1990s and quickly rose to become a leading brand in cosmetics and toiletries. P&g has invested more than $700 million in Argentina since 1991, including the purchase of local diaper maker Prosan.
