GILLETTE FINDS MATCH FOR CRICKET

GILLETTE FINDS MATCH FOR CRICKET: Swedish Match agreement-in-principle for purchase of disposable lighter business should lighten one profit burden on Gillette. The Gillette business segment containing the disposable ligher business has not shown an operating profit for at least seven years. In the most recent three years, the "other" business group produced total sales of $364 mil. and losses of $27 mil. In the most recent years, however, Gillette reduced the amount of losses in that business segment from $11.5 mil. in 1982 to $4.6 mil. in 1983. That improvement presumably made the business a more attractive candidate for divestiture. The disposable lighter business itself accounted for $42 mil. in sales in 1983. The remainder of the "Other" business segment sales in 1983 ($63 mil). came from S. T. Dupont luxury lighters, clocks and watches and disposable surgical products. Gillette said it is disposing of the business because "we're in the process -- as we have been for a number of years -- of getting rid of business that don't fit our goals of sustained profitable growth, and we're in the process of getting into new areas that will have sustained profitable growth." The Gillette/Swiss Match agreement calls for Gillette's U.S. sales force to continue distributing Cricket lighters during a "transitional period." When the sales force is freed up it will have more time to focus on other products such as the recently purchased Oral-B dentifrice products. Final agreement on the Cricket sale will "be reached in the coming months," Swedish Match and Gillette said. In a recent presentation to financial analysts, Gillette VP/Treasurer Milton Glass identified computers and health care as two general business categories which "survive" general assessment for overall growth opportunities. Gillette is testing the waters of computer product marketing through investments in a catalogue supply business (Misco) and a software developer (DataSoft). The company has also indicated interest in the home health area, which Glass characterized as being dominated by small, under-capitalized firms with great products.Foster Medical, a home health care business in Gillette's corporate headquarters back-yard, was recently purchased by Avon. Foster, in fact, has represented a solid growth area within Avon during its first months with the firm. A preliminary report on Avon's third quarter declared: "a strong third quarter performance is anticipated for the company's Foster Medical Div." Gillette also has made a recent small purchase in the skin salon business, picking up the Elizabeth Grady chain of 11 Boston region salons in August. Gillette described that purchase as a growth opportunity in a segment related to the physical well-being trend. Gillette plans to add salon units in New England.