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Church & Dwight to Acquire Orajel
Posted: April 1, 2008Church & Dwight Co., Inc., makers of Arm & Hammer products, announced that it has signed a definitive agreement to acquire the Del Pharmaceuticals, Inc. business for $380 million in cash from Coty Inc. The transaction, which is subject to regulatory approval and other customary conditions, is expected to close in July 2008.
Del Pharmaceuticals' net sales in the fiscal year ended December 31, 2007 were approximately $100 million. Over three quarters of those sales were from the Orajel brand.
"Orajel is a great addition to our existing portfolio and provides access to a fast-growing segment of the attractive premium oral care category," said James R. Craigie, chairman and CEO, Church & Dwight. "Orajel also brings to our company a powerful franchise that has developed great consumer loyalty. This transaction is consistent with our growth strategy of strengthening our businesses by adding #1 or #2 brands in areas of high growth potential with gross margins that are accretive to the overall company."
Church & Dwight's 2007 net sales of $2.2 billion include a premium oral care business led by the Arm & Hammer toothpaste and SpinBrush brands. Adding the Orajel brand will immediately increase the gross margin for the company and will complement the strategy of building scale in core categories. The brand will be integrated into the Company's existing oral care business.
"It was important for Coty to identify the most suitable purchaser who will provide the best opportunity to grow this portfolio," said Bernd Beetz, CEO of Coty Inc. "While these pharmaceutical brands are highly respected, we remain focused on building and strengthening our core beauty business comprised of fragrance, color cosmetics, skin care and toiletries."