The Clorox Company (CLX) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of Gojo Industries, maker of Purell, expands leadership in health and hygiene, adding a trusted brand and enhancing reach across B2B and retail channels.

• Leverages Purell's market leadership, strong B2B and retail presence, and consumer trust to drive cross-selling and growth opportunities.

• Combines complementary organizations with cultural compatibility, supporting smooth integration and unlocking long-term value.

• Advances portfolio evolution for consistent, profitable growth and resilience in health and wellness.

• Accelerates Purell's retail growth by utilizing established brand-building and distribution capabilities.

Financial terms and conditions

• Purchase price is $2.25 billion in cash, with a $330 million anticipated tax benefit, resulting in a net price of $1.92 billion.

• Transaction represents an adjusted EBITDA multiple of 11.9x (net of tax benefit) and 9.1x on a synergized basis.

• Deal funded primarily through debt, raising net debt leverage to 3.6x at closing, with a target to reduce to 2.5x by end of 2027.

• Expected to be EPS neutral in year one and accretive in year two.

Synergies and expected cost savings

• At least $50 million in run-rate cost synergies anticipated, mainly from scale, supply chain, manufacturing, logistics, and procurement.

• Revenue synergies expected from cross-selling, innovation, and expanded distribution in both B2B and retail channels.

• Accretive to adjusted EBITDA margins after synergies.

• Majority of cost savings expected within two to three years post-close.