Church & Dwight signed a definitive agreement to acquire the number-two mouthwash brand, TheraBreath, for $580 million in cash, the company said Monday. The deal, subject to regulatory approval, is expected to close by year’s end.
TheraBreath had net sales of approximately $86 million for the 12 months through September. Church & Dwight said the deal is a $495 million acquisition, or a 13.7x multiple paid, after factoring in an $85 million cash tax shield.
The acquisition marks Church & Dwight’s 14th brand, alongside such oral care stalwarts as Arm & Hammer toothpaste and SpinBrush electric toothbrushes. TheraBreath’s appeal skews toward younger consumers, Church & Dwight CEO Matthew Farrell said in a statement.
The company is projecting 2022 TheraBreath net sales growth of roughly 15% to $100 million.