Church & Dwight Acquires TheraBreath For $580M

Church & Dwight Co Inc CHD has agreed to acquire TheraBreath, the alcohol-free mouthwash brand, for $580 million in cash. Church & Dwight expects to leverage its distribution network, manufacturing footprint, and operating expertise to achieve an estimated $6 million in run-rate operating synergies by 2023.

• TheraBreath's net sales for the trailing twelve months through September 30, 2021, were approximately $86 million.
• The company anticipates closing the transaction in Q4.
• Church & Dwight expects the acquisition to be dilutive to 2021 EPS by $0.03, including transition costs, acquisition-related expenses, interest expense, and intangible amortization expense. 
• Church & Dwight plans to finance the acquisition with debt. It held $180 million in cash and equivalents as of September 30, 2021.
• "We now expect 2021 adjusted earnings per share (EPS) to be $2.96, inclusive of the $0.03 dilutive EPS effect of the acquisition. The acquisition is expected to be 2% accretive to cash earnings in 2022 and neutral to 2022 EPS, inclusive of transition costs, interest expense and intangible amortization expense," said CEO Matthew T. Farrell.
• Price Action: CHD shares closed lower by 0.04% at $93.34 on Friday.