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Church & Dwight signs on for Water Pik purchase
Posted on Monday, 17 July 2017 15:01
Consumer goods maker Church & Dwight has signed on the dotted line to pick up Water Pik, a California-headquartered maker of oral health care products and replacement shower heads.
Under the terms of the transaction, which will see MidOcean Partners exit the target, the buyer will pay around USD 1.00 billion in cash for the company.
Completion is expected to follow during the third quarter of this year, subject to the green light from regulatory authorities and satisfaction of other customary closing conditions.
Commenting on the agreement, Church & Dwight chief executive Matthew Farrell emphasised that the move will complement the buyer’s existing presence in the oral care field, in which it is already active via its Arm & Hammer toothpaste brand.
The firm’s other products in this segment include Spinbrush battery-powered toothbrushes and Orajel oral analgesics.
Farrell added that Church & Dwight will be able to enter the replacement showerhead market as a consequence of the deal, which is viewed as a positive step given a growing emphasis on water conservation.
The buyer will finance the deal using debt and the purchase is expected to be neutral to the group’s earnings per share for 2017.
Water Pik describes itself as a leader in the development and manufacture of personal and oral health care products and was established in 1962 as Aqua Tec.
The company’s products have been featured in over 50 clinical studies and include its water flosser oral irrigator, which is designed as an alternative to flossing which can help to prevent gum disease.
It works using a combination of water pressure and pulsations to clean deep between teeth and below the gum line to areas which cannot be reached using dental floss.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 29 deals targeting small electrical appliance manufacturers announced worldwide during 2017 to date.
Among those targeted is South Korean water purifier maker Coway, in which institutional investors bought a 5.0 per cent stake for USD 340.00 million back in May, making it the sector’s largest deal of the year so far.
© Zephus Ltd