Church & Dwight
definitively agreed to buy
Procter & Gamble's
battery-powered SpinBrush toothbrush business for $75 million in cash.
Princeton, N.J.-based Chruch & Dwight said the deal also calls for an inventory settlement amount following the business transfer and additional cash payments of up to $30 million based on near-term performance. The transaction is expected to be completed in the fourth quarter.
Sales of the business for the year ended June 30 were $110 million, over 80% of which were in the in the U.S. and Canada.
"This acquisition provides us with an attractive brand in the toothbrush segment and strengthens our strategically important oral care business," said Church & Dwight chief James Craigie. "The proven cleaning efficacy of power brushing enhances our position as a provider of serious oral care products."
Church & Dwight markets Arm & Hammer toothpaste in the U.S. and owns the Pepsodent brand.
On Wednesday, Church & Dwight shares rose 54 cents to $39.12.