Earlier this year, The Clorox Company announced that they have entered into a definitive agreement to acquire GOJO Industries for $2.25 billion in cash. This includes anticipated tax benefits, leaving a net purchase price of $1.92 billion. GOJO Industries is the current owner of Purell, the well-known hand sanitizer brand.
Clorox announced its intention to purchase GOJO Industries to strengthen its overall market position. The Clorox Company is already a titan in the health and hygiene industry, and this transaction will only fortify that. By acquiring GOJO Industries’ portfolio, Clorox will catapult itself into the niche of skin hygiene.
This acquisition will provide growth opportunities for both the Clorox and Purell brands. Due to Clorox’s strong portfolio and presence in the retail market, Purell will benefit. Additionally, the combination of GOJO’s commercial, manufacturing, R&D, and more with Clorox’s strengths in brand-building, distribution capabilities, and consumer-led innovation will create opportunities neither company previously had.
This acquisition isn’t happening for no reason; their synergy says it all. It isn’t just their products that complement each other; the companies themselves are compatible. Similar culture, organization, and management styles set them up for success. In fact, GOJO will continue to operate out of its current Ohio headquarters, while Clorox works out of California, which symbolizes a desire to work in tandem with each other.
Do you want to find a potential buyer with as much synergy as Clorox and GOJO? Contact Stony Hill Advisors today to discuss your options. Let’s work together.