Church & Dwight, USA Detergents May Merge

Church & Dwight Co. Inc., which makes Arm & Hammer baking soda and household cleaning products, and USA Detergents Inc., the household cleaning products maker, have held talks that could result in a merger, the companies said on Tuesday in a regulatory filing.

The discussions could also lead to a reorganization of USA Detergents or a change in its board or directors or management, they said in a filing with the Securities and Exchange Commission. Church & Dwight and USA Detergents already have a laundry care joint venture that combined their sales teams. They expect to integrate their warehouse and distribution systems in the second half of this year.

Church & Dwight, based in Princeton, N.J., holds a 15% stake in North Brunswick, N.J.-based USA Detergents. The stake is equal to 2.1 million common shares. In a separate SEC filing, investor Robert Chapman of El Segundo, Calif., said he has spoken with USA Detergents about various business strategies, including the joint venture, recapitalizations, a full sale of the company and sales of assets. Mr. Chapman, who holds a 7.3% stake in USA Detergents, sent a letter on Tuesday to Chief Executive Officer Uri Evan regarding an individual that Mr. Chapman wants on the board. A USA Detergents spokesman said he had not yet seen the Church & Dwight or Chapman filings.