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Church & Dwight to buy Avid Health for USD 650m
Posted on Tuesday, 21 August 2012 13:45
Listed consumer goods group Church & Dwight has agreed to acquire privately-held gummy vitamins maker Avid Health for USD 650.00 million in cash, in a deal that will add the Vitafusion and L’il Critters brands to its portfolio.
Subject to regulatory approval, the transaction is expected to close early in the fourth quarter.
Following the announcement, shares in the New York-listed buyer closed three cents higher at USD 53.04.
Church & Dwight makes a range of personal care, household and speciality products under a number of trademarks, but is perhaps best known for its Arm & Hammer baking soda and toothpaste.
James Craigie, the company’s chief executive, said: “The acquisition of Avid’s gummy vitamins business represents a great addition to our existing portfolio and brings to our company a new growth platform in one of the fastest-growing segments of the attractive vitamin/mineral/supplement category.
“It is also consistent with our strategy of strengthening our business by adding number one or number two brands in areas of high growth potential.”
Church & Dwight said it expects to finance the deal with a combination of debt and cash.
Washington-based Avid’s net sales for the trailing 12 months to 30th June 2012 were approximately USD 230.00 million, while earnings before taxes, depreciation and amortisation stood at around USD 58.00 million.
In 2005, private equity firm Bear Growth Capital Partners bought the minerals and supplements maker for an undisclosed sum.
The acquisition of Avid is the first by Church & Dwight since it bought the Batiste brand of dry shampoo from Vivalis in the UK last year.
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