Mergers & Acquisitions Investors Would Love to See: Clorox (CLX) and Church & Dwight (CHD)
Buyer: Clorox Co (NYSE:CLX)
Seller: Church & Dwight Co., Inc. (NYSE:CHD)
I’m not sure there’s ever such a thing as a merger of equals, but if one does exist, it would be the marriage of Church & Dwight and Clorox.
Clorox brings to the table its namesake brand along with Pine-Sol, Glad, Kingsford Charcoal, Burt’s Bees, Brita and Hidden Valley. Church & Dwight is best known for Arm & Hammer baking soda, cat litter, toothpaste, etc.; Trojan condoms; Oxiclean stain removers and Xtra laundry detergent.
Together as one company, it would have $9.2 billion in annual revenue generating $1.7 billion in operating profits providing grocery stores and its other customers with a much bigger product offering. Not to mention its $1.3 billion in free cash flow would give it lots of future M&A ammunition.
Church & Dwight has long been one of my favorite consumer stocks. Merged with Clorox, it would be a rare case of one plus one equals three.