Summary
Church & Dwight Co., Inc. (CHD) announced on August 20, 2012, that it has entered into a Stock Purchase Agreement to acquire all of the outstanding capital stock of Avid Health, Inc. for approximately $650 million in cash. Avid Health is a significant player in the vitamin, mineral, and supplement market, notably recognized for its L'il Critters® children's gummy vitamins and Vitafusion® adult gummy vitamins. This acquisition is expected to close in early Q4 2012, subject to customary closing conditions and antitrust approvals. The company plans to finance the transaction through a combination of debt and cash. Investors should note that the reported purchase price is subject to adjustments based on Avid Health's closing working capital.
Key Highlights
- 1Church & Dwight Co. is acquiring Avid Health, Inc., a leader in the vitamin, mineral, and supplement category.
- 2Key brands acquired include L'il Critters® children's gummy vitamins and Vitafusion® adult gummy vitamins.
- 3The total purchase price is $650 million in cash, subject to working capital adjustments.
- 4The acquisition is expected to be financed through a mix of debt and cash.
- 5Closing is anticipated in early the fourth quarter of 2012.
- 6The transaction is subject to regulatory approval (Hart-Scott-Rodino) and other standard closing conditions.
Frequently Asked Questions
While not explicitly detailed in this 8-K, the acquisition of Avid Health, a leader in the vitamin, mineral, and supplement category with strong gummy vitamin brands, suggests a strategic move by Church & Dwight to expand its presence in the growing health and wellness market and leverage established consumer brands.
The company has stated its intention to finance the acquisition with a combination of debt and cash. Specific details on the debt instruments or the amount of cash to be used were not provided in this filing.
The closing of the transaction is anticipated to occur early in the fourth quarter of 2012, contingent upon the satisfaction of all closing conditions, including antitrust review.
The filing mentions that the transaction is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Investors should also be aware that the purchase price is subject to adjustment based on Avid Health's closing working capital.