Church and Dwight to buy Waterpik for $1 billion

Business 7/17/2017, 2:04 PM
Church and Dwight to buy Waterpik for $1 billion

The Arm and Hammer toothpaste maker reached an agreement to pay $1 billion for Water Pik Inc. from Colorado to tap on the potential of the target company's portfolio of water-jet technology for oral flossers and showerheads. In a statement published on Monday, Church and Dwight Co. Inc. revealed it expects $10 in operating synergies by 2019, while that the acquisition should be neutral to this year's adjusted earnings per share. It will take over the company, which also goes as Waterpik, from MidOcean Partners.

"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... Our oral care portfolio gives Church and Dwight a leading position in a growing category with tailwinds as the population ages and consumer interest in oral health continues to expand," stated Matthew Farrell, chief executive of the firm based in Ewing, New Jersey.

The press release said the transaction is expected to be completed in the current quarter and that the the stock purchase would be financed with debt.

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