10 Mar Church & Dwight to Acquire Orange Glo International for $325 Million Brands Include OxiClean, Orange Glo and Kaboom Products
Excerpt of Press Release by Church & Dwight
Church & Dwight Co., Inc. (NYSE:CHD), makers of Arm & Hammer® products, today announced a definitive agreement to acquire Orange Glo International, Greenwood Village, CO. for $325 million in cash. The transaction, which is subject to regulatory and other customary approvals, is expected to close during the third quarter of 2006.
Orange Glo International’s sales in the fiscal year ended January 1, 2006 were almost $200 million; two-thirds of those sales were from OxiClean®, the premium-priced brand leader in the fast-growing laundry pre-wash additive category, with remaining sales from Kaboom® bathroom cleaner and Orange Glo® household cleaner products.
The transaction is structured as an asset purchase resulting in a cash benefit from tax depreciation with a net present value of over $60 million.
Orange Glo International reported 2005 operating profit before charges of $17 million. Although Church & Dwight expects to continue managing it as a separate business unit, combining operations is anticipated to result in cost synergies of over $20 million a year by the middle of 2008.
Atlas Strategic Advisors acted as exclusive financial advisor to Church & Dwight Co., Inc. in connection with this transaction.
Atlas Advisors is the marketing name for Atlas Advisors, LLC and Atlas Strategic Advisors, LLC. Atlas Strategic Advisors, LLC provides financial advisory services in connection with mergers, acquisitions and other similar transactions. Atlas Strategic Advisors, LLC is a wholly owned subsidiary of Atlas Advisors, LLC and a member of the FINRA.
None of the information contained in this release constitutes a recommendation, solicitation or offer by Atlas Strategic Advisors, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.