Church & Dwight Sinks Its Teeth Into Del Labs To Acquire Orajel
This article was originally published in The Tan Sheet
Executive Summary
Church & Dwight will augment its oral care portfolio with the addition of Del Labs' Orajel topical analgesic brand under a proposed $465 mil. acquisition announced July 2
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Church & Dwight will augment its oral care portfolio with the addition of Del Labs' Orajel topical analgesic brand under a proposed $465 mil. acquisition announced July 2. The Arm & Hammer marketer will have "certain rights with respect to the Orajel brand" and has the option to purchase the brand outright from Del three years after the close of the acquisition, expected in the fourth quarter, the firm said. According to Church & Dwight Chairman Robert Davies III, the company's "main interest" in Del Labs is the Orajel brand, which currently comprises 20% of Del's sales and generated revenue of $50 mil. in 2003. The deal is the second acquisition by Church & Dwight in the last year aimed at growing the company's oral care business. The firm recently bought Unilever's Pepsodent , Aim and Mentadent brands, as well as exclusive marketing rights to Close-Up (1 (Also see "Church & Dwight Sees Potential In Oral Care Value Niche and Unilever Brands" - Pink Sheet, 22 Sep, 2003.), p. 8). Under the proposed agreement, Del would become a privately held subsidiary of DLI Holding Corp., a division formed by Church & Dwight and equity firm Kelso & Co. DLI will buy Del for $385 mil. in cash and assume the firm's $80 mil. debt. Church & Dwight will invest $30 mil. in DLI, with the rest of the financing provided by Kelso. After the transaction closes, Del President and CEO Dan Wassong will retire, and Executive VP-Marketing William McMenemy will succeed him in that role. President of Del Pharmaceuticals Charles Hinkaty will become COO, and Executive VP-Sales Harvey Alstodt will take the post of president of global business. The acquisition will be overseen by new C&D President and CEO James Craigie; the exec is replacing Davies, who will remain chairman "for an extended period" (2 'The Tan Sheet' June 21, 2004, In Brief). [Editor's note: This story was contributed by "The Rose Sheet" and will appear in the July 5 edition of that publication. For more information on "The Rose Sheet" call 1-800-332-2181.] |