Clorox Company (CLX.US) acquires GOJO, the parent company of Purell, for 2.25 billion USD to step up in the health and hygiene market.

The Clorox Company (CLX.US) announced on Thursday that it will acquire Purell hand sanitizer manufacturer GOJO Industries for $2.25 billion in cash, in order to expand its brand portfolio in the consumer health and hygiene category. Sources familiar with the matter revealed last September that GOJO was considering various options including a full sale or selling a minority stake. Its flagship hand sanitizer brand Purell saw a surge in sales during the pandemic, which have since stabilized. The Lippman-Kanfer family, which holds a stake in GOJO, attempted to sell the Akron, Ohio-based company in 2023, but failed to secure a satisfactory offer despite negotiations with potential buyers like Georgia-Pacific. In the end, the family chose to obtain a $500 million new loan from Silver Point Finance for debt refinancing and to support the company's operations. In a statement released on Thursday, Clorox Company stated that the $2.25 billion deal includes a $1.92 billion purchase price and an estimated tax benefit of around $330 million. The company disclosed that the annual sales of the Purell brand owner are close to $800 million, with a stable annual revenue growth rate of 5% over the past three years. Clorox Company plans to finance this acquisition mainly through debt, and expects the transaction to be completed before the end of its 2026 fiscal year. The company stated that the deal is expected to generate at least $50 million in annual cost synergies. Clorox Company said that GOJO will continue to operate in Ohio, and its business will be integrated into Clorox Company. This acquisition is the latest case of a consumer goods giant seeking to accelerate growth. Clorox Company saw a 19% decline in revenue in the previous quarter, partly due to performance issues in the health and wellness business segment, as well as problems with software upgrades for its entire business line management systems. The company stated that the shipping disruptions had an impact on its market share. Clorox Company reiterated its annual performance forecast: full-year sales are expected to decline by 6% to 10%, with adjusted earnings per share expected to be between $5.95 and $6.30.