Procter & Gamble Looks to Sell Clearasil

Procter & Gamble Co., the largest U.S. maker of household products, said it’s seeking a buyer for its 50-year-old Clearasil acne-treatment ointment, which has been losing sales to newer brands. The maker of Crest toothpaste and Olay cosmetics said it hired Goldman, Sachs & Co. for help selling Clearasil, which remains the No. 1 acne brand in the U.S., Britain and Germany. The brand is sold under the Biactol name in France and Britain. Johnson & Johnson’s Neutrogena acne treatment, the No. 2 brand, increased sales by 10% in the year ended July 16, more than Clearasil’s 6% gain, according to Information Resources Inc., a market research firm. Clearasil had sales of $73.5 million, representing 24% of the $300-million-a-year U.S. market, followed by 23% for Neutrogena. P&G; said it will keep Clearasil, which is sold in more than 50 countries, if it doesn’t get an offer it considers acceptable. P&G; said Clearasil represented less than 2% of its beauty-care sales of $7.39 billion in the 12 months ended June 30, or less than $148 million. P&G; had total sales of $40 billion in that period. Separately, P&G; said it is testing a new fat-free sandwich cracker made with the controversial fat substitute Olestra, despite disappointing initial results for other products made with the additive. The new Prevesse sandwich cracker was introduced in Chapel Hill, N.C., in May. Olestra has had a controversial reception because of concerns that it can lead to gastrointestinal discomfort. Procter & Gamble shares rose 19 cents to close at $64.31 on the New York Stock Exchange.