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Church & Dwight to add women’s electric hair removal products for $900M including earn-out


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