Procter & Gamble

On October 31, 1837, candle maker William Procter and soap maker James Gamble signed a partnership in Cincinnati, establishing the Procter & Gamble Manufactory, each contributing $3,569.47. In 1861 the U.S. government named the company the official soap supplier of the Union Army in the west.⁠[1]

Procter was born in England, and Gamble emigrated to the United States in 1819 at age 16. The two married sisters from the Norris family, and their father-in-law, Alexander Norris, suggested they go into business together. The partnership began with assets of just over $7,000, during the recession that followed the Panic of 1837.⁠[2]

In 1879 the company introduced Ivory soap. In 1882 Ivory was advertised nationally for the first time, at a cost of $11,000.⁠[3]

After a fire at its first plant, the company built the modern Ivorydale facility, which opened in 1886, and in 1890 added its first research laboratory there.⁠[4]

In 1887 William Cooper Procter introduced profit sharing, which the company calls “America’s oldest continuous profit-sharing system.”⁠[5]

In 1890 William Alexander Procter was named the company’s first president. After his death, his son William Cooper Procter took over running the company.⁠[6]

In 1911 the company introduced Crisco shortening.⁠[7]

In 1920 the company stopped making candles.⁠[1]

In 1931 Neil McElroy proposed a system of “one man—one brand.” In 1933 the company became a key sponsor of radio’s daytime serials, which soon became known as “soap operas.”⁠[8]

In 1932 the company joined the Dow Jones Industrial Average. In 1933 it introduced Dreft, the first synthetic household detergent.⁠[3]

In 1946 the company introduced Tide, the first synthetic laundry detergent, followed in 1949 by Joy, the first liquid synthetic detergent.⁠[7]

In 1955 the company introduced Crest, the first fluoride toothpaste clinically proven to fight cavities. In 1961 it developed Pampers diapers.⁠[4]

In 1956 a new P&G headquarters was built in Cincinnati.⁠[6]

In 1957 the company acquired Charmin.⁠[3]

Neil McElroy left in 1957 and was replaced by Howard Morgens. Edward G. Harness became CEO in 1974 and John G. Smale in 1981.⁠[9]

The Federal Trade Commission charged that the Clorox and Folgers acquisitions violated antitrust laws. The Folgers case was dismissed after P&G agreed to make no grocery acquisitions for seven years, but it was forced to divest Clorox in 1967.⁠[9]

After a Centers for Disease Control report linked Rely tampons to toxic shock syndrome, a rare but often fatal disease, the company suspended further sales of Rely on September 22, 1980.⁠[8]

In 1985 the company acquired Richardson-Vicks for $1.2 billion. In July 1991 it bought the Max Factor and Betrix lines from Revlon for $1.03 billion, and in July 1997 it paid about $1.84 billion for Tambrands, maker of Tampax.⁠[10]

In 1988 Head & Shoulders became the company’s first brand in China.⁠[4]

In September 1998 the company announced “Organization 2005,” replacing four geographic regions with seven Global Business Units to focus “globally on brands, rather than on geographies.”⁠[10]

In 1999 the company bought the Iams Company, a pet food maker. In 2001 it sold Crisco and bought the hair care company Clairol.⁠[6]

On June 8, 2000, A.G. Lafley was named President and Chief Executive. After 30 years of service, Durk I. Jager retired on July 1 as chairman, president, chief executive and a director, and John E. Pepper served as Chairman of the Board. Worldwide net sales for fiscal 2000 were $39.95 billion and net earnings were $3.5 billion.⁠[11]

In January 2005, P&G announced an agreement to acquire The Gillette Company, a leader in blades and razors, oral care and batteries with 2004 sales of $10.5 billion. Shareholders approved the combination on July 12, 2005.⁠[12]

On October 1, 2005, P&G completed the acquisition for approximately $53.43 billion, exchanging 0.975 P&G common shares for each Gillette share and increasing its shares outstanding by 962 million. A share repurchase program that followed was completed in July 2006 with cumulative repurchases of $20.1 billion.⁠[13]

In November 2008, P&G completed the divestiture of its coffee business by merging its Folgers subsidiary with The J.M. Smucker Company in an all-stock reverse Morris Trust transaction. Shareholders tendered 38.7 million P&G shares, and the company recognized an after-tax gain of $2.0 billion. In 2009 Bob McDonald became President and Chief Executive Officer, while A.G. Lafley continued to chair the Board.⁠[14]

In fiscal 2012, P&G completed the divestiture of its snacks business to The Kellogg Company. On May 23, 2013, A.G. Lafley was appointed Chairman of the Board, President and Chief Executive Officer. Net sales rose 1 percent to $84.2 billion in fiscal 2013.⁠[15]

In August 2014, P&G announced a plan to significantly streamline its portfolio to about 65 leading brands. On November 13, 2014, it announced a split transaction in which Berkshire HathawayBerkshire HathawayBerkshire Hathaway Inc. is a multinational conglomerate holding company headquartered in Omaha, Nebraska, United States (NYSE: BRK.A/BRK.B), with businesses spanning insurance, railroads, energy, manufacturing, and retail. Warren Buffett took control of the company in 1965 and ran it until 2025, and Greg Abel succeeded him as CEO at the start of 2026. The company long held stakes in several U.S. banks, including M&T (1991–2020), Bank of America, and Wells Fargo, which it successively reduced or exited between 2020 and 2024.Open the full entry would exchange its P&G shares for a recapitalized Duracell.⁠[16]

The Duracell transaction was completed in February 2016.⁠[17]

In fiscal 2017, P&G completed the divestiture to Coty of four product categories comprising 43 beauty brands, recording an after-tax gain of $5.3 billion on $14.9 billion of shares exchanged.⁠[18]

David Taylor became CEO on November 1, 2015, and A.G. Lafley became Executive Chairman.⁠[16]

Net sales fell 8 percent to $65.3 billion in fiscal 2016, and Taylor signed the annual letter as Chairman of the Board, President and Chief Executive Officer.⁠[17]

In April 2018, P&G agreed to dissolve the PGT Healthcare partnership and to acquire the over-the-counter healthcare business of Merck KGaA for €3.375 billion.⁠[19]

The acquisition was completed in fiscal 2019 for $3.7 billion at closing exchange rates. That year the company took a one-time, non-cash charge to reduce the carrying value of the Gillette Shave Care business, and net earnings attributable to P&G were $3.897 billion, compared with $9.750 billion a year earlier.⁠[20]

Jon R. Moeller became President and Chief Executive Officer in 2021 and Chairman of the Board in 2022. In fiscal 2022, net sales were $80.2 billion and net earnings attributable to P&G were $14.7 billion. As of June 30, 2022, the company had about 106,000 employees.⁠[21]

In June 2025, P&G announced plans to streamline its portfolio and organization, expecting about $1.5 billion to $2.0 billion in before-tax restructuring costs over two years and a reduction of up to 7,000 non-manufacturing overhead positions by the end of fiscal 2027.⁠[22]

More than half of the plan’s costs were incurred in fiscal 2026.⁠[23]

Shailesh G. Jejurikar, chief operating officer from 2021 to 2025, became President and CEO in January 2026 and Chairman of the Board effective August 1, 2026. In connection with Jon R. Moeller’s retirement as Executive Chairman, the non-employee directors decided to recombine the roles of chairman and CEO.⁠[24]

In fiscal 2026, P&G’s net sales were $87.0 billion, compared with $84.3 billion a year earlier, and diluted earnings per share were $6.62. The dividend rose 3 percent, its 70th consecutive annual increase, and P&G has paid a dividend for 136 consecutive years since its incorporation in 1890.⁠[25]

P&G has five reportable segments and sells products in about 180 countries and territories. As of June 30, 2026, it had about 104,000 employees, down 4 percent because of the restructuring program. Net earnings attributable to P&G were $16.0 billion in fiscal 2026.⁠[26]

On August 4, 2026, P&G agreed to acquire Thorne, a premium wellness and supplement brand, for $3.8 billion, with closing expected in the second quarter of fiscal 2027.⁠[23]