Preparations for Procter & Gamble's integration of Gillette are proceeding as scheduled, according to a May 24 filing with the Securities & Exchange Commission.

However, P&G announced the delay of a shareholder meeting to consider the deal, from June 12 to July 12. Gillette's meeting will take place July 13, also one month later than planned.

The postponement will "allow sufficient time for shareholder review of its proxy and registration statement" and will not impact the deal's overall timeline, P&G maintained in a May 26 release.

A transition steering committee led by Gillette CEO James Kilts and P&G CFO Clayt Daly met May 23 and reported that several integration planning teams are in place and ready to move "as soon as the deal closes," according to the SEC filing.

The teams are assigned to oversee different aspects of the integration, including global operations, global business services (GBS)/IT and supply chain/manufacturing.

P&G Vice Chairman Global Operations Bob McDonald reported collaboration on global operations integration planning "has been exemplary."

"Gillette's drug channel coverage and retail execution is a key competitive advantage we want to learn more about and reapply to P&G brands post-closing," he added.

The majority of Gillette will comprise its own global business unit under P&G's GBU structure, alongside beauty care, health, baby and family care, and household care. However, Gillette's oral care and personal care businesses will be combined with the comparable divisions in P&G.

Gillette announced the creation of a GBU Transition Integration Team in a May 23 SEC filing. The team plans to "work closely with the oral care and personal care businesses to ensure that they are leveraging our learnings to integrate successfully into the P&G organization."

P&G revealed plans to acquire Gillette in a $57 bil. transaction in January (¹ Also see "P&G $57 Bil. Gillette Acquisition Creates 21 Billion-Dollar Brand Portfolio" - HBW Insight, 31 January, 2005., p. 3).

P&G/Gillette Integration On Track, But Shareholder Votes Postponed

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