Colgate Acquires Tom's of Maine - Sell Out or Smart Deal?

A couple weeks ago, Tom's of Maine announced it was being acquired by health and beauty products giant Colgate.

Tom's, a private company owned by Tom and Kate Chappell, reportedly fetched $100 million.

Why did the couple with it's decidedly uncorporate mission and style sell itself to a big conglomerate?

According to Tom Chappell, teaming up with Colgate enhances Tom's growth potential by pushing its products through Colgate's national and global distribution channels. It also ensures that Tom's business and the staff that have helped to build it will have their futures better secured by entering the Colgate family.

But will this really be better for Tom's workers and customers? Despite the announced intention that Tom's will run as a standalone business within Colgate, precedent shows that when giant companies swallow up little ones they eventually digest them completely. It will be very hard for Tom's to "preserve" it's unique culture and autonomy in the long run.

In the end, what Colgate may be buying is a brand and a set of patented product formulations. Hopefully, the employees of Tom's will serve a longer term purpose than a momentary gargling of natural ingredients within the gaping corporate maw of Colgate, only to be spit down the drain after a brief rinse.