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Church & Dwight to Acquire Waterpik for Approximately $1 Billion

EWING, N.J.--(BUSINESS WIRE)--Church & Dwight Co., Inc. (NYSE:CHD) has signed a definitive agreement to acquire Water Pik, Inc. (“Waterpik”), 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.

“It is a strong, growing business with an established history of innovation. The science behind water flossing and water conservation is strong and Waterpik has an expertise in water jet technology.”

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Waterpik’s net sales for the trailing twelve months through June 30, 2017 were approximately $265 million. Waterpik is the #1 water flosser brand and the #1 replacement showerhead brand in the U.S. Approximately 70% of net sales are in the water flosser segment with the remainder in showerheads. The international business represents approximately 20% of sales. The products are marketed in the U.S. and Canada and exported to over 80 countries.

“Oral care is important to us strategically,” said Matthew T. Farrell, Church & Dwight Chief Executive Officer. “Waterpik represents a powerful addition to our existing oral care portfolio which includes ARM & HAMMER toothpaste, SPINBRUSH battery-operated toothbrushes and ORAJEL oral analgesics. The flosser products business is a fast-growing platform and capitalizes on the trends of increased gum disease, oral care awareness across all demographics and expansion of the middle-class in emerging markets. The Waterpik brand has a strong reputation among dental care professionals. Our oral care portfolio gives Church & Dwight a leading position in a growing category with tailwinds as the population ages and consumer interest in oral health continues to expand.”

“We are excited to enter the replacement showerhead business. Water conservation is a growing trend. Waterpik’s showerhead technology contributes to efforts globally to conserve water while providing consumers a refreshing shower.”

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.

“Waterpik will be our 11th power brand. The acquisition is consistent with our strategy of acquiring #1 or #2 brands in areas with growth potential,” Mr. Farrell said. “It is a strong, growing business with an established history of innovation. The science behind water flossing and water...


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