Please see attachments to answer
1) What are some of the "investments" that P&G might have included?
2) What do you think are the sources ofincrementalcash in-flows P&G would have included?
3) What, if any, synergies (positive or negative) might P&G have considered?
P&G Takes Tide to the Cleaners With big brands under attack, Tide dry-cleaning business is growing, with more locations, campus delivery and washvand-foid service By Sharon Terlep / Photographs and video by Bryan Anselm for The Wall Street Journal Updated Sept. 3, 2019 7:59 am ET SUMMIT, N.J.Procter & Gamble Co. started a dry-cleaning chain a decade ago to market detergent and learn more about how consumers like their laundry. That experiment has evolved into the sector's second-largest U.S. player as mom-and-pop rivals struggle. Tide Dry Cleaners was an unusual move for the world's biggest maker of household staples. It remained a low-priority project, limited to a couple dozen locations scattered about the U.S. The venture took on heightened importance a few years ago when P&G , W stung by the consumer shift away from big brands and competition from leaner startups and online rivals, started seeking new ways to reach customers. The cleaning business, while still small within P&G, is gaining revenue as it adds locations and offerings, from campus delivery to wash-and-fold service. "The industry was declining; it was ready for someone to come in and change the way things are done," said Lou Pacifico, owner of two Tide locations in Summit, N.J. He owned a valet-parking business when he learned about Tide Cleaners in 2015 and decided to become a franchisee. "Still, we were trying something new, and we didn't know how it was going to go." Mr. Pacifico said he aims eventually to open five to 10 locations. Overall, P&G operates or franchises 146 dry-cleaning locations. The chain accounts for roughly 2.5% of the U.S. dry-cleaning industry's $9.1 billion in annual sales, and its locations generate more revenue than the average dry cleaner, according to market- research firm IBISWorld. "At first it was a one-off, an experiment," said Sundar Raman, P&G's president of fabric care in North America, who took over the venture in 2015. "Part of what we're trying to do now at P&G is get into things we haven't done before." As once-standard chemical solvents have been phased out, Tide Cleaners has adopted silcone-based dry-cleaning alternatives. A Tide Cleaners employee steamed a garment in Summit. PHOTO: BRYAN ANSELM FOR THE WALL STREET JOURNAL The business isn't making money yet, P&G says, but it is betting attractive stores, modern equipment, a focus on strong service and the use of Tide detergent on laundry orders will draw in customers. Expanding operations, as P&G first did in Chicago to include wash-and-fold laundry, on-campus delivery and lockers for pickup or drop-off, will make for a profitable business model, the company said. Mr. Raman said P&G plans to continue opening dozens of outlets a year and has a waiting list of potential franchisees. He declined to specify how many locations P&G ultimately aims to open.Huntington Co. in Berkley, Mich, is the biggest U.S. dryclean franchiser with more than T00 locations. Gwner Wayne Wudyka sees aws in his rival's businesa model. He says building new facilities as the industry daclines, as P8
