Clorox Sells SBP Insecticides Business to Reckitt Benckiser

The Clorox Company, Oakland, CA, sold its SBP insecticides business, including trademarks, inventory, product formulations and registrations, to Reckitt Benckiser. Terms of the transaction, which closed on April 15, 2003, were not disclosed.

Clorox said it is focused on returning its Latin America business to healthy profitability, and on Oct. 30, 2002, announced its plans to sell its business in Brazil, as it did not have sufficient scale to be successful in the long-term. The business in Brazil (including SBP insecticides) accounts for about 1% of Clorox’s total revenues. This SBP divestiture is included in the noncash charge Clorox recorded in the first quarter ended Sept. 30, 2002, for the divestiture of the Brazil business.

The SBP insecticides brand was established in Brazil in 1974 and Clorox acquired the business in 1995. Clorox manufactures the SBP product line at its facility in San Juan, Argentina. The sale does not involve the transfer of employees. Clorox is continuing to pursue opportunities to sell its remaining business in Brazil, which includes Super Globo and Clorisol bleaches and X-14 and Fluss cleaners.