Summary
Church & Dwight Co., Inc. (CHD) has announced a significant strategic move, entering into a definitive Stock Purchase Agreement to acquire Waterpik, a leader in water-jet technology for oral care and shower heads. The acquisition is valued at approximately $1.033 billion in cash, subject to adjustments for closing working capital. This move signals a clear intent by Church & Dwight to expand its product portfolio into higher-growth, complementary categories. Investors should note that the transaction is expected to close in the third quarter of 2017 and is not subject to any financing condition, with the company planning to fund the acquisition through debt. The deal is contingent on customary closing conditions, including regulatory approval under the Hart-Scott-Rodino Act. This acquisition represents a substantial investment for Church & Dwight, and its successful integration and contribution to future earnings will be key areas for investor focus.
Key Highlights
- 1Church & Dwight to acquire Waterpik for approximately $1.033 billion in cash.
- 2Waterpik is a water-jet technology company specializing in oral flossers and shower heads.
- 3Acquisition expected to close in Q3 2017, subject to regulatory approvals and customary closing conditions.
- 4The transaction will be financed with debt; no financing condition is attached.
- 5The agreement includes pre-closing covenants and termination rights with an end date of October 16, 2017.
- 6Waterpik management stock options will be exchanged for CHD stock options, while other vested options will be cashed out.