New Product Activity
Mr. Craigie commented, “Our strong organic growth in the first nine months of 2012 of 5.5% has been largely driven by innovative new products, including ARM & HAMMER unit dose laundry detergent, ARM & HAMMER Sensitive Laundry Detergent, OXICLEAN Booster for dishwashers, ARM & HAMMER ULTRA LAST cat litter, the co-branded ARM & HAMMER and ORAJEL Sensitive toothpaste and the new TROJAN CHARGED condom.”
He added, “We are building upon these successes with the recent launch of the SPINBRUSH Tooth Tunes manual toothbrush and the ORAJEL single dose cold sore treatment. All of the new products launched in 2012 will continue to be supported by increased marketing spending to continue to deliver strong organic sales growth on both our value-oriented and premium priced products.”
On October 1, 2012, the Company acquired Avid Health, Inc, the leader in gummy form vitamins and supplements, for an aggregate purchase price of approximately $650 million, financed with the issuance of $400 million in aggregate principal amount of senior notes (2.875%) due 2022, commercial paper and cash. The integration process is in progress.
With respect to the Avid acquisition, Mr. Craigie stated, “We previously announced that the Avid acquisition was expected to be slightly dilutive to 2012 earnings per share. With improved visibility into one-time charges, we now expect the acquisition to be earnings neutral in 2012.”
The Company reported today that its Board of Directors has authorized a new share repurchase program, under which the Company may purchase up to an additional $300 million of the Company's common stock. The previous authorization announced in August 2011 has approximately $20 million remaining for use in the repurchase of the Company’s shares. The primary purpose of the program is to offset share increases resulting from stock option exercises. Under the program, shares will be repurchased in the open market at times and amounts considered appropriate by the Company based on factors including price and market conditions. The Company currently has approximately 140 million shares outstanding.