Church & Dwight to acquire Waterpik for $1B

EWING, N.J. — In a move aimed at bolstering its oral care portfolio, Church & Dwight on Monday announced it planned acquisition of Waterpik. The CPG giant will be paying $1 billion cash for the company, which markets the No.1 water flosser brand and showerhead brand, and brought in $265 million in sales for the 12 months ended June 30.

“Oral care is important to us strategically,” said Matthew T. Farrell, Church & Dwight Chief Executive Officer. “Waterpik represents a powerful addition to our existing oral care portfolio which includes ARM & HAMMER toothpaste, SPINBRUSH battery-operated toothbrushes and ORAJEL oral analgesics.

“Oral care is important to us strategically,” Church & Dwight CEO Matthew Farrell said. “The flosser products business is a fast-growing platform and capitalizes on the trends of increased gum disease, oral care awareness across all demographics and expansion of the middle-class in emerging markets. The Waterpik brand has a strong reputation among dental care professionals. Our oral care portfolio gives Church & Dwight a leading position in a growing category with tailwinds as the population ages and consumer interest in oral health continues to expand.”

The acquisition also means Church & Dwight will be entering a new category — the replacement showerhead business, which Farrell said is seeing interest as water conservation grows as a trend.

Roughly 70% of Waterpik’s net sales in the water flosser segment, with the showerhead business making up the remainder. The company’s international business — which sees its products marketed in more than 80 countries outside the United States and Canada — makes up about 20% of its sales.

“Waterpik will be our 11th  power brand,” Farrell said. “The acquisition is consistent with our strategy of acquiring #1 or #2 brands in areas with growth potential. It is a strong, growing business with an established history of innovation. The science behind water flossing and water conservation is strong and Waterpik has an expertise in water jet technology.”

When Water Pik is fully integrated into its business, Chruch & Dwight said that it would leverage its distribution network and operating discipline to realize roughly $10 million in operating synergies by 2019. Additionally, Farrell said the he expects the company to deliver $18% growth in reported earnings per share in 2018.

Farrell said that it would maintain Waterpik’s Fort Collins, Colo., headquarters.

“This business has a highly capable management team, and we are pleased to welcome them to the Church & Dwight family,” he said. “Waterpik is nimble and asset light and should be an excellent fit.”