Church & Dwight buys Orange Glo for $325M

Church & Dwight buys Orange Glo for $325M

Church & Dwight buys Orange Glo for $325M

Church & Dwight Co., the maker of Arm & Hammer baking soda and other household products, agreed to acquire Orange Glo International, a privately held maker of household cleaning products, for $325 million

Princeton, N.J.-based Church & Dwight said the acquisition of Orange Glo would complement its Arm & Hammer and Xtra laundry brands, and give it access to the fast-growing additives segment of the laundry category. Church & Dwight said it would finance the deal with a $250 million addition to its bank credit facility and available cash. The transaction is expected to close during this year's third quarter, pending regulatory and other customary approvals.

Orange Glo makes OxiClean, a pre-wash additive that helps remove stains, Kaboom bathroom cleaner and Orange Glo household cleaner products. The Greenwood Village, Colo.- based company in 2005 reported operating profit before charges of $17 million, on sales of nearly $200 million.

Church & Dwight backed its 2006 financial forecast of $1.93 per share, excluding any effect from the acquisition, which is expected to have a “slightly negative” effect on earnings per share.