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Church & Dwight buying Waterpik for $1B

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Ewing-based personal care products company Church & Dwight Co. Inc. is paying $1 billion for water-jet technology firm Waterpik Inc., it announced Monday.

Church & Dwight said in a news release that Waterpik is the leading national brand of both water flossers and replacement showerheads. The cash deal is expected to close in the third quarter, subject to customary approvals and conditions.

“Oral care is important to us strategically,” Matthew T. Farrell, CEO of Church & Dwight, said in a prepared statement. “Waterpik represents a powerful addition to our existing oral care portfolio, which includes Arm & Hammer toothpaste, Spinbrush battery-operated toothbrushes and Orajel oral analgesics. The flosser products business is a fast-growing platform and capitalizes on the trends of increased gum disease, oral care awareness across all demographics and expansion of the middle class in emerging markets.”

Church & Dwight acquired the brand from private equity firm MidOcean Partners.

Waterpik had net sales of about $265 million for the 12-month period ended June 30 and earnings before interest, taxes, depreciation and amortization of about $80 million, Church & Dwight said. About 70 percent of the company’s sales were in the oral water flosser business.

“The Waterpik brand has a strong reputation among dental care professionals,” Farrell said. “Our oral care portfolio gives Church & Dwight a leading position in a growing category with tailwinds as the population ages and consumer interest in oral health continues to expand.

“We are excited to enter the replacement showerhead business. Water conservation is a growing trend. Waterpik’s showerhead technology contributes to efforts globally to conserve water while providing consumers a refreshing shower.”

Church & Dwight said it would maintain Waterpik’s Fort Collins, Colorado, facility.

BofA Merrill Lynch was Church & Dwight’s financial adviser, while Proskauer Rose LLP was its legal adviser. Harris Williams and Wells Fargo were financial advisers for MidOcean, while Kirkland & Ellis LLP was legal adviser.

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