Church & Dwight Co., Inc. will acquire the Del Pharmaceuticals, Inc. business for $380 million in cash from Coty Inc. The transaction, which is subject to regulatory approval and other customary conditions, is expected to close in July.
Del Pharmaceuticals’ net sales in the fiscal year ended Dec. 31, 2007 were approximately $100 million. Over three quarters of those sales were from the Orajel brand, the No. 1 brand in the oral analgesic category, with remaining sales from a variety of other OTC brands.
Church & Dwight’s 2007 net sales of $2.2 billion include its premium oral care business led by the Arm & Hammer toothpaste and SpinBrush brands. According to the company, adding the Orajel brand will immediately increase the gross margin and will complement the strategy of building scale in core categories. The Orajel products are expected to be integrated into existing Church & Dwight manufacturing facilities by the end of 2009.