Church & Dwight (CHD) - Get Church & Dwight Company Inc. Report , manufacturer of household products like Arm & Hammer, will buy Flawless and Finishing Touch, a hair removal products maker, for up to $900 million.
Flawless is owned by Ideavillage Products Corp. a private company.
Shares of Church & Dwight rose 0.4% to $69.59 in premarket trading Thursday.
Church & Dwight will pay $475 million in cash and up to $425 million in a cash "earn-out" payment based on a 12-month net sales objective. The deal is expected to close in the second quarter.
"Women today are more focused on hair removal from their bodies," said FLAWLESS provides simple, fast, dermatologist-approved solutions for face, brows and legs Matthew T. Farrell, Church & Dwight CEO. "FLAWLESS provides simple, fast, dermatologist-approved solutions for face, brows and legs."
Including the expected additional earnings coming in from Flawless, Church & Dwight reaffirmed its earnings per share growth guidance for the fiscal year of 7% to 9%.
The stock has risen 7.6% year to date.
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