Church & Dwight (CHD +1.3%) agrees to acquire FLAWLESS and FINISHING TOUCH brands of hair removal products from Ideavillage Products, for ~$475M in cash plus an additional earn-out payment of up to $425M
The transaction is expected to close in Q2 2019.
The acquired brands have TTM sales of ~$180M with EBITDA of ~$55M, around 30% margin; around 10% of net sales come from international markets.
In 2019, the company expects ~7-9% adjusted EPS growth driven by ~ 7-9% EPS growth of existing business, plus 1% accretion from FLAWLESS acquisition. The acquisition is expected to increase 2019 cash earnings by 4%.
Source: M A News on Seeking Alpha