Arm & Hammer owner buys water flosser maker Waterpik for $1B
Miami Marlins right fielder Giancarlo Stanton loses his glove over the wall as he attempted to catch a triple hit by Los Angeles Dodgers' Chris Taylor during the fourth inning of a baseball game, Sunday, July 16, 2017, in Miami. The Dodgers defeated the Marlins 3-2. When Stanton made a running leap and stretched his left arm above the wall, his glove came off and fell to the other side. (AP Photo/Wilfredo Lee)
Church & Dwight Co., the household goods manufacturer that owns the Arm & Hammer brand, said Monday it has agreed to acquire water flosser maker Water Pik for about $1 billion in cash, a move to expand its presence in the oral care business.
The deal is expected to close in the third quarter.
Church & Dwight, based in Ewing, N.J., has a line of oral care products, including Arm & Hammer toothpaste, battery-operated toothbrushes branded under Spinbursh and Orajel oral analgesics.
“Oral care is important to us strategically,” said Church & Dwight CEO Matthew Farrell in a statement. "The flosser products business is a fast-growing platform and capitalizes on the trends of increased gum disease, oral care awareness across all demographics and expansion of the middle-class in emerging markets."
Water Pik, which is owned by private equity firm MidOcean Partners, markets products under the Waterpik brand, including its replacement showerheads. The Fort Collins, Colo.-based company had $265 million in sales worldwide in the 12-month period ending June 30. About 70% of its sales were from water-jet flossers, with the rest coming from showerheads.
The company says Waterpik is "the #1 water flosser brand and the #1 replacement showerhead brand in the U.S."
Church & Dwight plans to keep Waterpik's replacement showerhead business and retain the Fort Collins facility. "Water conservation is a growing trend," Farrell said.
Once the acquisition is completed, Church & Dwight plans to "leverage its distribution network and operating discipline" to generate about $10 million in savings by 2019.
Church & Dwight plans to finance the deal with debt. It continues to expect its 2017 earnings per share to be in the range of $1.75 to $1.77 -- and adjusted EPS to be $1.92 -- unchanged from its previous outlook.
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