US consumer goods manufacturer Procter & Gamble Co (P&G) yesterday launched a $1-billion bid for the rest of its Spanish joint venture with Spain's Agrolimen Group, in order to strengthen and expand its feminine-care and baby-care products businesses.

P&G had established s a 50-50 joint venture in 1989 called Arbora & Ausonia with Barcelona-based Agrolimen Group - a Spanish holding company of the Carulla family with international presence in the food industry.

Arbora & Ausonia sells products such as Dodot diapers and Kandoo and Charmin baby wipes and other feminine care products in Spain, Portugal and the Iberian Peninsula.

The company generates sales of €507 million in Spain, €99 million in Portugal, and €606 million in the Iberian Peninsula.

"While we have valued the partnership with Agrolimen, we entered into a put arrangement because we saw benefits to drive innovation and scale benefits with a 100 per cent ownership interest in this business,'' said Cincinnati, Ohio-based P&G

P&G, whose brands include Pampers, Ariel, Whisper, Pantene, Oral-B, Duracell, Olay, Head & Shoulders, Wella, Gillette, Braun, and Ace, said that it believes the transaction fits with its strategy to focus on its largest businesses.

P&G said that the deal is subject to regulatory approvals and is expected to close by the end of the year.

In April, the world's largest household products maker had embarked on a $10-billion restructuring after sales started to lag in the North American and European markets.

It also came under pressure after activist investor Bill Ackman's Pershing Square Capital Management this month acquired around 1 per cent stake the company. Although Ackman has not yet spelt out what changes are needed to revitalise the company, analysts expect him to push the management to make further cost cuts in order to boost earnings.

P&G, a Fortune 500 Company, operates in about 80 countries, serves approximately 4.4 billion people around the world and posted net profit of $11.797 billion for 2011 on revenues of $82.6 billion.

Early this year, it sold its Pringles potato chip brand to Kellogg Co, the worlds leading breakfast cereal maker, for $2.695 billion in cash. (See: Kellogg to buy Pringles brand from Procter & Gamble for $2.695 billion)

Pringles, a stacked potato crisp that has been on supermarket snack aisles for more than four decades and easily identified by snack lovers worldwide by its unique saddle shape and distinct canister packaging, is the world's second largest snack in savory brands.