FutureFuels: Proctor & Gamble deal extended and made non-exclusive.
Ian Gilson, CFA
FutureFuels (FF) announced that it had signed an extension to the agreement with Proctor & Gamble for the sale of the bleach extender (:NOBS). The purchase agreement was extended to December 31, 2016. Sales of NOBS was $70 million in 2011. Volume and price terms were not announced.
Of more importance is that FutureFuel is now able to sell NOBS to third parties. Such sales should stem the decline in sales to P&G, spread overhead costs over a broader base and reduce unit production expenses.
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