Church & Dwight is expanding its oral-care portfolio by acquiring the TheraBreath brand for $580m.
TheraBreath is the number two brand in the alcohol-free mouthwash category in the US, generating revenues of around $86m during the last year and EBITDA of $27m. However, its international presence is still limited and represents less than 10% of sales.
The cash deal, which is expected to close in the fourth quarter, will add a fast-growing brand to Church & Dwight’s oral-care range, which includes Arm & Hammer toothpaste, Spinbrush battery-operated toothbrushes, Orajel oral analgesics, and Waterpik water flossers.
The company stated that once TheraBreath is fully integrated, it expects to leverage its distribution network, manufacturing footprint, and operating expertise to achieve an estimated $6m in operating synergies by 2023. Church & Dwight also plans to expand TheraBreath’s distribution through its international footprint.
The group’s Chief Executive, Matthew Farrell, commented: “The TheraBreath brand is a problem/solution product and one of the fastest-growing brands in the mouthwash category. This acquisition gives Church & Dwight a strong position in a growing category with tailwinds as the brand skews towards younger consumers and consistently has a high level of brand loyalty and repeat purchase.”
TheraBreath’s annual net sales are projected to grow approximately 15% to $100m during 2022, with adjusted EBITDA hitting $36m, including $4m of synergies.
