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 consumer trust and favorable market trends.

• Strengthens presence in both B2B and retail channels, unlocking cross-selling opportunities and accelerating Purell's retail growth.

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

• Advances portfolio evolution for more consistent, profitable growth and resilience, aligned with long-term strategies and consumer trends.

• Both companies share a purpose-driven culture and commitment to science-based innovation.

Financial terms and conditions

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

• Funded primarily through debt, with net debt leverage expected to rise to 3.6x at closing and return to 2.5x by end of 2027.

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

• 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.