Church & Dwight Co., Inc. completed the acquisition of Dr. Harold Katz, LLC/HK-IP International, Inc. for $570 million.
December 23, 2021
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Church & Dwight Co., Inc. (NYSE:CHD) entered into a definitive agreement to acquire Dr. Harold Katz, LLC and HK-IP International, Inc. for $580 million on November 24, 2021. As part of the agreement, Church & Dwight will acquire the TheraBreath® brand for $580 million in cash. Church & Dwight expects to finance the acquisition with debt. Church & Dwight intend to use the net proceeds from the offering of $400 million to fund a portion of the TheraBreath acquisition. On December 10, 2021, Church & Dwight Co., Inc. closed an underwritten public offering of $400 million aggregate principal amount of the Company's 2.300% Senior Notes due 2031. The transaction is subject to regulatory approval and other customary conditions. The transaction is expected to close in the fourth quarter of 2021. As of December 3, 2021, the transaction is expected to close in December 2021.The transaction is expected to be gross margin accretive to Church & Dwight. The acquisition is expected to be 2% accretive to cash earnings in 2022 and neutral to 2022 EPS, inclusive of transition costs, interest expense and intangible amortization expense.” The acquisition is expected to be dilutive to the Church & Dwight's 2021 EPS by ($0.03), inclusive of transition costs, acquisition-related expenses, interest expense, and intangible amortization expense. Centerview Partners LLC acted as financial advisor and Simon Sharpe, Ron Papa, John Ingrassia, Andrea Rattner, Baldassare Vinti, Daryn Grossman, Maya Tarr and Amanda Nussbaum of Proskauer Rose LLP acted as legal advisor to Church & Dwight. Financo Raymond James as exclusive financial advisor and David M. Grinberg of Sidley Austin LLP as legal advisor to seller. Raymond James Financial, Inc. (NYSE:RJF) acted as a financial advisor to Dr. Harold Katz, LLC.
Church & Dwight Co., Inc. (NYSE:CHD) completed the acquisition of Dr. Harold Katz, LLC and HK-IP International, Inc. for $570 million on December 24, 2021. As per the terms of the transaction, Church & Dwight shall pay net of cash of $556 million and additional cash payment of $14 million related to certain indemnity obligations.
Church & Dwight Co., Inc. specializes in the manufacturing and marketing of consumer products. Net sales break down by family of products as follows:
- cleaning, hygiene and personal care products (94.5%); detergents, stain removers, deodorants, shampoos, depilatory creams, pregnancy tests, toothbrushes, condoms, lubricants, baking soda, etc. sold under ARM & Hammer, Batiste, First Response, L'Il Critters, Trojan, Nair, Orajel, Oxiclean, Spinbrush, Vitafusion and Xtra;
- specialty products (5.5%): food additives, nutritional supplements, prebiotics and probiotics for animals, baking soda intended for the industrial sector, special cleaning products intended for the maintenance of offices, restaurants and hotels.
The United States account for 83% of net sales.
CHURCH & DWIGHT CO., INC. 
