Church & Dwight to acquire Waterpik for $1B
EWING, N.J. — In a move aimed at bolstering its oral care portfolio, Church & Dwight on Monday announced it planned acquisition of Waterpik. The CPG giant will be paying $1 billion cash for the company, which markets the No.1 water flosser brand and showerhead brand, and brought in $265 million in sales for the 12 months ended June 30.
“Oral care is important to us strategically,” said Matthew T. Farrell, Church & Dwight Chief Executive Officer. “Waterpik represents a powerful addition to our existing oral care portfolio which includes ARM & HAMMER toothpaste, SPINBRUSH battery-operated toothbrushes and ORAJEL oral analgesics.
“Oral care is important to us strategically,” Church & Dwight CEO Matthew Farrell said. “The flosser products business is a fast-growing platform and capitalizes on the trends of increased gum disease, oral care awareness across all demographics and expansion of the middle-class in emerging markets. The Waterpik brand has a strong reputation among dental care professionals. Our oral care portfolio gives Church & Dwight a leading position in a growing category with tailwinds as the population ages and consumer interest in oral health continues to expand.”
The acquisition also means Church & Dwight will be entering a new category — the replacement showerhead business, which Farrell said is seeing interest as water conservation grows as a trend.
Roughly 70% of Waterpik’s net sales in the water flosser segment, with the showerhead business making up the remainder. The company’s international business — which sees its products marketed in more than 80 countries outside the United States and Canada — makes up about 20% of its sales.
“Waterpik will be our 11th power brand,” Farrell said. “The acquisition is consistent with our strategy of acquiring #1 or #2 brands in areas with growth potential. 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.”
When Water Pik is fully integrated into its business, Chruch & Dwight said that it would leverage its distribution network and operating discipline to realize roughly $10 million in operating synergies by 2019. Additionally, Farrell said the he expects the company to deliver $18% growth in reported earnings per share in 2018.
Farrell said that it would maintain Waterpik’s Fort Collins, Colo., headquarters.
“This business has a highly capable management team, and we are pleased to welcome them to the Church & Dwight family,” he said. “Waterpik is nimble and asset light and should be an excellent fit.”
Walgreens adds Sleek MakeUP to exclusive beauty lineup
DEERFIELD, Ill. — Walgreens on Monday announced the addition of Sleek MakeUP, one of the fastest growing mass market cosmetics brands in the U.K., to its beauty offering at more than 150 stores and on Walgreens.com.
“The addition of Sleek MakeUP to our cosmetic offering is just another example of how we continue to deliver on our promise to differentiate and elevate the beauty experience at Walgreens,” stated Lauren Brindley, group VP and general merchandise manager, Walgreens. “We will continue to deliver new and exciting brands in a welcoming and accessible environment in hopes of giving our beauty customers more reasons to shop our store.”
Acquired by Walgreens Boots Alliance in 2015, the brand’s full line, including products like the Solstice Highlighting Palette, Cream Contour Kit and Major Matte Lip Cream, are now available on Walgreens.com and will be in stores starting this month.
Sleek has a unique heritage that originated in East London when a local beauty entrepreneur noted that women of color were underrepresented in the cosmetics market. Sleek was an early pioneer of the contouring trend with the launch of Contour Kit in 2009, and was one of the first beauty brands to introduce the matte lip look with its Major Matte lipstick in 2012.
Salvatori-Scott celebrates 30 years
NEW ORLEANS — Salvatori-Scott last week celebrated the company’s founding 30 years ago with the man who started it all, Steve Salvatori (second from the right in the picture above), during McKesson ideaShare 2017, here.
Pictured from left to right are SSI partners Charlie Gurney, Mike McNeil, Marianne Nihan (president), Steve Salvatori (chairman) and Dan Briggs.
The SSI team replicated the celebration of its 10-year anniversary, which also happened to be held during a McKesson event that was hosted in New Orleans (see picture below).
Today, SSI builds upon its 30-year track record developing strategies to maximize distribution, promotion and sales opportunities, and is the only broker in the nation that uses an integrated approach in selling to drug wholesalers, the major sub-groups that pull product through them and the Hamacher Group, the company noted.