Personal Care Products Makers to Merge

Alberto-Culver Co. will buy Chatsworth-based St. Ives Laboratories for about $120 million, a deal that officials said would make both companies more cost-efficient and increase international sales.

The Chatsworth facility would continue to operate with minimal changes, and none of its 420 employees are expected to lose their jobs, although a few may be transferred, an Alberto-Culver spokesman said.

John L. Boyle, a spokesman for St. Ives, said the two companies agreed to the proposed acquisition in the interest of “advancing and improving their business.”

Analysts say the planned merger would give Alberto-Culver the opportunity to strengthen itself in the area of skin care, where St. Ives is well established.

Melrose Park, Ill.-based Alberto-Culver, a $1.3-billion company with significant international business in personal care products such as beauty aids, footwear and handbags, would provide a worldwide market for the $175.7-million St. Ives, which features similar hair, skin and lotion products, Boyle said.

Alberto-Culver spokesman Dan Stone said the company, which had $350 million in overseas sales in 1994, will put its advertising strength behind St. Ives to increase its $40 million in overseas sales.

Alberto-Culver expects savings in transportation costs when the company starts manufacturing and distributing St. Ives’ products overseas, he said.

The acquisition of St. Ives’ manufacturing and distributing plant will give Alberto-Culver a presence in the West, saving transportation costs, Stone said.

Alberto-Culver’s $15-per-share offer, subject to St. Ives shareholder approval, is expected to be finalized by late January.

In the wake of the announcement, St. Ives stock was up $1.88 at $14.38 on Nasdaq.