logo
Plus   Neg
Share
Email

Church & Dwight To Buy Water Pik For About $1 Bln In Cash

Church & Dwight Co. Inc. (CHD) said that it agreed to acquire Water Pik, Inc., the market leader in water-jet technology in both oral water flossers and replacement showerheads, for approximately $1 billion in cash.

The transaction, which is subject to regulatory approval and other customary conditions, is expected to close in the third quarter.

Waterpik's net sales for the trailing twelve months through June 30, 2017 were approximately $265 million.

Waterpik's trailing twelve months EBITDA was approximately $80 million, a 30% EBITDA margin. Once the business is fully integrated, Church & Dwight expects to leverage its distribution network and operating discipline to achieve an estimated $10 million in operating synergies by 2019.

The acquisition is structured as a stock purchase that the Company expects to finance with debt. The acquisition is expected to be neutral to 2017 EPS, inclusive of transition costs, acquisition-related expenses, interest expense and intangible amortization expense.

Church & Dwight continues to expect 2017 reported earnings per share to be $1.75 to $1.77 and adjusted EPS to be $1.92, consistent with its previous outlook, inclusive of the neutral EPS effect of the acquisition. Analysts polled by Thomson Reuters expect the company to report earnings of $1.93 per share for fiscal 2017. Analysts' estimates typically exclude special items.

In 2018, Church & Dwight expects to deliver approximately 18% reported EPS growth as 2017 reported EPS includes previously disclosed charges related to the Brazil Specialty Products business and the settlement charges related to our U.K. pension.

Church & Dwight expect to deliver 9% adjusted EPS growth ($2.09) driven by 7% EPS growth of our existing business, plus 3% accretion from the Waterpik acquisition inclusive of interest and intangible amortization expenses. In addition, one-time transition costs will negatively impact EPS by 1%.

For 2018, the company expects earnings per share to be in the range of $2.07 - $2.09. Analysts expect annual earnings of $2.07 per share.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Shares of Airbus Group SE were losing around 2 percent in the morning trading in Paris after the Aerospace and defense major reported Friday a sharp decline in its first-quarter profit as revenues were hurt by weak deliveries. Further, the company confirmed its forecast for fiscal 2018 adjusted EBIT, a key earnings metric. Bill Harris, Co-founder and former CEO of Paypal, claims Bitcoin to be the greatest scam in history. Harris wrote his opinion on Bitcoin in an opinion piece was published in Recode. "In my opinion, it's a colossal pump-and-dump scheme, the likes of which the world has never seen," Harris said. Amazon.com Inc. (AMZN) Thursday reported a first-quarter profit that more than doubled from a year ago, driven largely by a huge 46 percent growth in revenues. Shares of the online retailer gained 6 percent in extended session. Seattle, Washington-based Amazon reported first-quarter profit of $1.63...
Follow RTT