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| FORM 3 | U.S. SECURITIES AND EXCHANGE COMMISSION
+--------+ WASHINGTON, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting Person*
The Procter & Gamble Company
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(Last) (First) (Middle)
One Procter & Gamble Plaza
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(Street)
Cincinnati, Ohio 45202
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(City) (State) (Zip)
2. Date of Event Requiring Statement (Month/Day/Year) 8/26/99
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3. IRS Identification Number of Reporting Person if an Entity
(Voluntary) 31-0411980
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4. Issuer Name and Ticker or Trading Symbol Recovery Engineering, Inc.
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(Symbol NASDAQ: REIN)
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] Officer [ ] 10% Owner [X] Other
(give title below) (specify below)
(See attached)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint Group Filing (Check Applicable Line)
____ Form Filed by One Reporting Person
_X__ Form filed by More than One Reporting Person
TABLE I--NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
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<CAPTION>
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1. Title 2. Amount of 3. Ownership Form: 4. Nature of
of Securities Bene- Direct (D) or Indirect Bene-
Security ficially Owned Indirect (I) ficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr. 5)
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<S> <C> <C> <C>
Common Stock, par value $0.01 per share 1,192,150 (see attached) (I) (see attached)
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Reminder: Report on a separate line for each class of securities beneficially SEC 1473 (8-99)
owned directly or indirectly. Page 1 of 3
* If the form is filed by more than one reporting person, see Instruction
5(b)(v).
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TABLE II--DERIVATIVE SECURITIES BENEFICIALLY OWNED
(e.g., puts, calls, warrants, options, convertible securities)
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<CAPTION>
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1. Title of Derivative 2. Date Exer- 3. Title and Amount of Securities 4. Conversion 5. Ownership 6. Nature of In-
Security (Instr. 4) cisable and Underlying Derivative Security or Form of direct Bene-
Expiration (Instr. 4) Exercise Derivative ficial
Date Price Security: Ownership
(Month/Day/ of Direct (D) (Instr. 5)
Year) Derivative or In-
---------------------------------------------------- Security direct (I)
Date Expira- Amount or (Instr. 5)
Exer- tion Title Number of
cisable Date Shares
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<S> <C> <C> <C> <C> <C> <C> <C>
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Explanation of Responses:
This Initial Statement of Beneficial Ownership on Form 3 (this "Form 3") is
being filed by The Procter & Gamble Company, an Ohio corporation ("Procter &
Gamble") and Tenzing, Inc. ("Merger Sub") a direct wholly owned subsidiary of
Procter & Gamble. On August 26, 1999, Procter & Gamble, Merger Sub and Recovery
Engineering, Inc., a Minnesota corporation ("REI") entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for, among other things, the
commencement by Merger Sub of a tender offer (the "Offer") to purchase all of
the shares of common stock of REI for $35.25 per share in cash without interest
and, following the Offer, the merger of REI and Merger Sub (the "Merger").
Simultaneously with the execution and delivery of the Merger Agreement, Procter
& Gamble and Merger Sub entered into a Tender and Option Agreement dated as of
August 26, 1999 (the "Tender and Option Agreement") with certain shareholders of
REI (the "Major Shareholders") as follows: (i) WEC, Inc. (formerly known as
Wanner Engineering, Inc.) - 596,100 shares; (ii) William F. Wanner, Jr. - 58,050
shares and 8,000 options exercisable within 60 days; and (iii) Brian F.
Sullivan - 408,500 shares and 121,500 options exercisable within 60 days. Under
the Tender and Option Agreement, the Major Shareholders have agreed, subject to
the terms thereof, to tender all of their shares of common Stock of REI to
Merger Sub pursuant to the Offer. The Major Shareholders have also granted
Procter & Gamble and Merger Sub a proxy to vote their shares, representing
approximately 19.3% of the issued and outstanding shares of common stock of REI
as of August 25, 1999, in favor of the Merger. The Major Shareholders have also
granted Procter & Gamble and Merger Sub an option to purchase their shares of
common stock of REI under certain conditions.
Simultaneously with the execution and delivery of the Merger Agreement,
Procter & Gamble also entered into a Stock Option Agreement (the "Company
Option") pursuant to which REI granted to Procter & Gamble an option to purchase
1,202,875 shares of common stock of REI, subject to the terms thereof. Procter &
Gamble and Merger Sub disclaim beneficial ownership of these shares of common
stock of REI.
The foregoing summary of the Tender and Option Agreement and the Company
Option is qualified in its entirety by reference to such agreements, which have
been filed as exhibits to the Schedule 13D and the Schedule 14D-1 filed with
respect to REI on September 1, 1999.
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<CAPTION>
<S>
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
<C> <C>
/s Gretchen W. Price 9/2/99
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**Signature of Reporting Person Date
Gretchen W. Price
on behalf of THE PROCTER
& GAMBLE COMPANY
Note: File three copies of this Form, one of which must be manually signed. If
space is insufficient, See Instruction 6 for procedure. SEC 1473 (8-99)
Page 2 of 3
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Joint Filer Information
Name: Tenzing, Inc.
Address: c/o The Procter & Gamble Company
One Procter & Gamble Plaza
Designated Filer: The Procter & Gamble Company
Issuer & Ticker Symbol: Recovery Engineering, Inc. (REIN)
Date of Event Requiring Statement: 8/26/99
Signature: TENZING, INC.
By: /s/ Gretchen W. Price
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Name: Gretchen W. Price
Title: Vice President and Treasurer
SEC 1473 (8-99)
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