Over the second half of the twentieth century, Procter & Gamble acquired a number of other companies that diversified its product line and increased profits significantly.These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell, Shultons Old Spice, Max Factor, and the Iams Company, among others. In 1996, Procter & Gamble made headlines when the Food and Drug Administration approved a new product developed by the company, Olestra. Olestra, also known by its brand name Olean, is a substitute for fat in cooking potato chips and other snacks. Procter & Gamble has expanded dramatically throughout its history, but its headquarters still remain in Cincinnati.
By 2002, Procter & Gamble had reorganized its entire business to focus on the global growth of its famous brands and to add new products ahead of its competitors. Following dynamic performance in 2003 and 2004, P&G demonstrated the strength of its recovery with the announcement in 2005 that it had agreed a deal to acquire legendary personal care products rival Gillette.
In 2005, P&G acquired Gillette Corp. for $57 billion which is best known for its razors and shaving products. P&G has 28 research and development centers in 10 countries. In fiscal 2006, P&G had record revenues of $68.2 billion and net income of $8.6 billion.