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|Church & Dwight to Acquire Waterpik for Approximately $1 Billion|
Reaffirms 2017 Outlook and Announces 2018 EPS Outlook
Waterpik’s net sales for the trailing twelve months through
“Oral care is important to us strategically,” said
“We are excited to enter the replacement showerhead business. Water conservation is a growing trend. Waterpik’s showerhead technology contributes to efforts globally to conserve water while providing consumers a refreshing shower.”
Waterpik’s trailing twelve months EBITDA was approximately
“Waterpik will be our 11th power brand. The acquisition is consistent with our strategy of acquiring #1 or #2 brands in areas with growth potential,” Mr. Farrell said. “It is a strong, growing business with an established history of innovation. The science behind water flossing and water conservation is strong and Waterpik has an expertise in water jet technology.”
“The Waterpik business is located in
The acquisition is structured as a stock purchase that the Company expects to finance with debt. The acquisition is expected to be neutral to 2017 EPS, inclusive of transition costs, acquisition-related expenses, interest expense and intangible amortization expense.
Mr. Farrell said, “We continue to expect 2017 reported earnings per
share (EPS) to be
“In 2018, we expect to deliver approximately 18% reported EPS growth as
2017 reported EPS includes previously disclosed charges related to the
Brazil Specialty Products business and the settlement charges related to
We expect to deliver 9% adjusted EPS growth
Waterpik was acquired from
This press release contains forward-looking statements, including, among others, statements relating to the consummation, financing and impact of the Waterpik acquisition and anticipated associated cost savings; net sales and earnings growth; earnings per share; cost savings programs; and consumer demand and spending. These statements represent the intentions, plans, expectations and beliefs of the Company, and are based on assumptions that the Company believes are reasonable but may prove to be incorrect. In addition, these statements are subject to risks, uncertainties and other factors, many of which are outside the Company’s control and could cause actual results to differ materially from such forward-looking statements. Uncertainties include assumptions as to market growth and consumer demand. Factors that could cause such differences include, without limitation, the risk that Waterpik will not be integrated successfully, the risk that the cost savings from the transaction will not be fully realized or will take longer to realize than expected, and the ability of management to execute its plans with respect to the Company’s initiatives.
For a description of additional factors that could cause actual
results to differ materially from the forward looking statements, please
see the Company’s quarterly and annual reports filed with the
This press release also contains non-GAAP financial information. The Company has included a reconciliation of the non-GAAP information included in this press release to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for this reconciliation. The non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures.
This press release presents adjusted EPS, namely, earnings per share
calculated in accordance with GAAP, as adjusted to exclude significant
one-time items that are not indicative of the Company’s period to period
performance. We believe that this metric provides investors a useful
perspective of underlying business trends and results and provides
useful supplemental information regarding our year over year earnings
per share growth. Adjusted and forecasted EPS for 2017 excludes
previously disclosed charges related to the Brazil Specialty Products
business and the settlement charges related to our
This press release also presents the trailing twelve month EBITDA and EBITDA margin for Waterpik. EBITDA is a non-GAAP financial term and represents earnings before interest, taxes, depreciation and amortization.
Church & Dwight Co., Inc.