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Clorox Set to Buy Burt's Bees
Posted: October 31, 2007
Clorox Co. is positioned to buy Burt's Bees for US$925 million in cash, according to a number of reports. Clorox reportedly is looking to capitalize on growing consumer preference for natural products, Burt's Bees is well known for its use of natural ingredients over chemicals.
Clorox produces Clorox bleach, Brita water filtration products and Kingsford charcoal. Clorox expects the transaction to lower its fiscal 2008 earnings by about 10-15 cents per share and that the deal will begin to add to earnings in fiscal 2009. The cost of the transaction includes a payment of US$25 million for anticipated tax benefits.
Clorox is said to be looking into health and wellness trends if the deal goes through. The deal is expected to close late 2008.