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Clorox To Acquire Nutranext For $700 Mln - Quick Facts

Clorox Co. (CLX), a manufacturer of consumer and professional products, said it has entered into a definitive agreement to acquire Nutranext, a health and wellness company based in Sunrise, Florida, for $700 million. Mutranext manufactures and markets dietary supplement brands in the retail and e-commerce channels as well as in its direct-to-consumer business.

Clorox expects to fund the transaction through a combination of available cash and debt financing. The transaction is expected to close in the company's fiscal fourth quarter, which ends June 30, 2018.

Nutranext's products include multivitamins under the Rainbow Light brand, a vitamin brand in the natural channel; specialty minerals under the Natural Vitality brand, an anti-stress and sleep brand in the natural channel; and supplements for hair, skin and nails under the Neocell brand.

Nutranext also manufactures and markets multivitamins and specialty minerals through its direct-to-consumer business, primarily under the Stop Aging Now brand. About 90 percent of Nutranext sales are in the U.S.

"Adding Nutranext to our portfolio is consistent with our strategy to accelerate growth through acquisitions of leading brands in fast-growing categories with attractive gross margins and a focus on health and wellness," said Clorox Chairman and CEO Benno Dorer.

Clorox noted that the Nutranext acquisition will bring significant scale and breadth to its dietary supplements business. It follows the company's May 2016 acquisition of the RenewLife brand, a leader in digestive health.

Clorox said its preliminary estimates indicate the acquisition will dilute earnings per share by 7 to 11 cents in the fourth quarter of its current fiscal year, ending June 30, 2018, and by 8 to 12 cents in fiscal year 2019, and be accretive to earnings per share in fiscal year 2020.

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