Church & Dwight To Acquire USA Detergents

Shares of USA Detergents Inc. popped 18% after the laundry and cleaning products maker announced it is in an agreement to be acquired by Church & Dwight Co. for $7 a share. The companies had partnered in a combined laundry products business known as the ARMUS LLC joint venture. Princeton, N.J.-based Church & Dwight (CHD: news, msgs, alerts) previously acquired 15% of USA as part of that joint venture.

Church & Dwight estimates the total transaction cost at about $120 million, including assumption of debt. The company also said it plans to divest North Brunswick, N.J.-based USA’s non-laundry business, which accounted for less than 20 percent of its sales in 2000. The deal is expected to add 5-6% to Church & Dwight’s earnings in 2001, the company said. In 2002, the deal is expected to add 5-6% to earnings, over and above the contribution previously expected from the joint venture.