The Clorox Company (CLX) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of Gojo Industries and the Purell brand expands leadership in health and hygiene, leveraging favorable market trends and consumer trust.

• Strengthens position in both B2B and retail channels, enabling cross-selling, scale leadership, and accelerated retail growth.

• Combines complementary organizations with cultural compatibility and strong management teams, supporting integration and long-term value creation.

• Advances portfolio evolution for more consistent, profitable growth and resilience, focusing on high-growth, durable categories.

• Move aligns with a broader strategy to focus on core strengths and accelerate profitable growth.

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; accretive to adjusted EBITDA margins after synergies.

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.

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