Church & Dwight to buy Water Pik for $1bn in cash

Michele Maatouk Sharecast | 17 Jul, 2017 12:22 | | |

Money cash dollars
  • n/a
  • n/an/a
  • Max: n/a
  • Min: n/a
  • Volume: n/a
  • MM 200 : n/a
n/a

Church & Dwight has agreed to buy waterjet technology company Water Pik for around $1bn in cash.

The deal, which is expected to close in the third quarter, will be neutral to 2017 earnings per share, the company said.

Church & Dwight chief executive officer Matthew T. Farrell said: "Water Pik represents a powerful addition to our existing oral care portfolio which includes Arm & Hammer toothpaste, Spinbrush battery-operated toothbrushes and Orajel oral analgesics. The flosser products business is a fast-growing platform and capitalises on the trends of increased gum disease, oral care awareness across all demographics and expansion of the middle-class in emerging markets.

"The Water Pik brand has a strong reputation among dental care professionals. Our oral care portfolio gives Church & Dwight a leading position in a growing category with tailwinds as the population ages and consumer interest in oral health continues to expand.”

In the 12 months to the end of June, Water Pik - the number 1 water flosser brand and number 1 replacement shower head brand in the US - generated net sales of around $265m. The company's trailing 12 months earnings before interest, tax, depreciation and amortisation were approximately $80m.

Once the business is fully integrated, Church & Dwight expects to leverage its distribution network and operating discipline to achieve an estimated $10m in operating synergies by 2019.

Church & Dwight also said on Monday that it expects to deliver 9% adjusted EPS growth driven by 7% EPS growth of its existing business, plus 3% accretion from the Water Pik acquisition inclusive of interest and intangible amortisation expenses. It added that one-time transition costs will negatively impact EPS by 1%.

More news

22 Sep Europe close: Stocks finish higher on strong PMI readings

Stocks on the Continent finished mostly higher on the back of strong survey readings on the euro area's manufacturing and services sector and ahead of the German general elections at the weekend, although fresh barbs from Pyongyang were a drag on sentiment.

22 Sep Thousands of steel workers protest ThyssenKrupp merger in Germany

Thousands of steel workers gathered in Western Germany on Friday to protest the proposed merger of ThyssenKrupp and Tata Steel's European operations which was expected to result in approximately 4,000 job losses.

22 Sep London Close: FTSE firmer as pound losses ground after May speech

London stocks had reversed earlier losses to trade a little higher by Friday's close, helped along by a weaker pound as investors weighed up a key speech by Prime Minister Theresa May.

22 Sep JP Morgan Chase to establish global headquarters in Warsaw

Polish Deputy Prime Minister Mateusz Morawiecki announced on Friday that US bank JP Morgan Chase had picked Warsaw to play host to its new global operations centre, bringing thousands of jobs to the region from the beginning of 2018.

22 Sep FTSE 250 movers: Pets at Home dashes higher, oilers also lifted

The FTSE 250 index was on the front foot on Friday, led by retailer Pets at Home and a group of oil-related companies.

22 Sep Theresa May calls for post-Brexit transition period, new security treaty

In a speech in Florence on Friday, Prime Minister Theresa May confirmed that she wanted a two-year "implementation period" post-Brexit and a new treaty with the European Union on security and justice.

22 Sep FTSE 100 movers: Johnson Matthey rallies again but Smiths drops on results

London's FTSE 100 was up 0.6% to 7,305.66 in afternoon trade on Friday as investors mulled over PM Theresa May's Brexit speech in Florence.

22 Sep Results round-up

Saga, the specialist provider of products and services for those over 50, reported solid growth of 5.5% in underlying profits before tax for the first half as it ordered a second new cruise ship amid high demand.

22 Sep US economy shows resilience in face of hurricanes - Markit

Business activity in the US picked up in September despite hurricanes Harvey and Irma, as growth in the manufacturing sector helped to offset an easing in services, according to preliminary data released on Friday.

22 Sep Thalassa suspends share buyback as FairfieldNodal commences due diligence

Thalassa Holdings confirmed the suspension of its share buyback programme on Friday, as a suitor continued to circle the marine geoscience and subsea robotics company.