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Dial and Henkel scale back joint venture

Published on .

In the wake of Henkel's purchase of Colgate-Palmolive Co.'s Viva laundry detergent brand, Dial Corp. and Henkel on Jan. 3 announced they are scaling back their joint venture in Mexico. Henkel will no longer license Dial's Purex laundry detergent brand name in Mexico and will buy Dial's stake in the joint venture's Mexican operations for $18.9 million, Dial said in a statement. The sale will result in a $5 million loss as part of a previously announced restructuring.

Meanwhile, the Dial-Henkel joint venture in the U.S. will be limited only to sale of the Custom Cleaner home dry-cleaning brand. Dial already had discontinued Purex Advanced, the joint venture's other product, last fall. But the joint venture last fall conducted an agency review involving Purex brand incumbent DDB Worldwide, New York, and BBDO Worldwide, Chicago, for a launch of Purex detergent tablets in the U.S. scheduled for this year.

Copyright January 2001, Crain Communications Inc.

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