Paper-Pak to Buy P&G;’s Attends Business

Paper-Pak Products Inc., a La Verne-based maker of adult incontinence items, reached an agreement Wednesday with Procter & Gamble Co. to acquire P&G;’s North American and European Attends business that is expected to triple sales for the privately held company.

Under the proposed deal, Paper-Pak, with annual revenue of about $100 million, would also buy two P&G; factories in Greenville, N.C., and in Aneby, Sweden. It would continue to distribute the line under the Attends brand name.

Specializing in incontinence products such as disposable briefs and bed pads for the institutional market, Paper-Pak employs 500 people and would more than double its work force by taking on an additional 620 employees at the two new plants.

Terms of the agreement were not disclosed. Analysts said the proposed deal helps fortify the strengths of each company.

“It will be a significant product for Paper-Pak, and it allows P&G; to focus on what they are really the leaders in,” said Douglas Christopher of Crowell, Weedon & Co.

Larry Sheldon, Paper-Pak’s senior vice president of sales and marketing, said the acquisition has been in the works for months. Paper-Pak sells its products largely to hospitals, nursing homes and other institutional customers.

The transaction is expected to be finalized in about two weeks.

“This is really a great deal,” he said. “P&G; is very strong in retail, but Paper-Pak is focused on adult incontinence and this enhances our opportunities in the [institutional] marketplace.”

Sales of P&G;’s Attends make up only about 3.3% of the $350-million retail adult incontinence market, which is dominated by Kimberly-Clark’s Depends and Poise products with more than 52% of market share, according to recent figures.

But Attends is the leading brand in the institutional market, Sheldon said.

“And since that is our best market, it is a perfect fit,” he said.

Cincinnati-based P&G; will continue to produce its adult incontinence products in Asia, along with its other staple products such as Tide, Crest and Pampers.

P&G; shares fell $1.38 to close at $94.25 on the New York Stock Exchange.