CLOROX CO /DE/ acquired Renew Life (Renew Life Holdings Corporation) for approximately $290 million in cash (subject to post-closing adjustments; about 2.5x sales), a transaction completed in May 2016, structured as all cash.
Renew Life (Renew Life Holdings Corporation) operates in Health & Wellness - Digestive health / probiotics, is based in United States, had revenue of about About $115 million in calendar year 2015 sales. Renew Life is a leading brand in dietary health with an emphasis on digestive health and is the No. 1 brand of probiotics in the natural channel, with a growing share in the food, drug and mass channels. In calendar year 2015 Renew Life generated sales of about $115 million with gross margins generally in line with the Clorox Company average. Clorox acquired the business from Swander Pace Capital and other shareholders.
The acquisition is consistent with Clorox's strategy to accelerate growth through bolt-on acquisitions of leading brands into fast-growing categories with attractive margins. The U.S. digestive supplement market represented at least $10 billion and was growing about 7 percent annually, with the probiotics subcategory ($1.3 billion) expected to grow about 15 percent per year.
No. 1 probiotics brand in the natural channel in a $10 billion, ~7% annual-growth digestive supplement market, with the probiotics subcategory growing about 15% per year; gross margins in line with Clorox average. Expected to add nearly 2 percentage points of sales to Clorox's top line in fiscal 2017; leverages Clorox's brand-building and distribution-expansion capabilities. Clorox Health and Wellness segment (later parent of the Nutranext supplements business)
For more than 100 years, the Clorox portfolio has been firmly rooted in health and wellness, first through the disinfecting properties of bleach, and later extending into Brita and Burt's Bees to meet the needs of health conscious consumers. The Renew Life acquisition is consistent with our strategy to accelerate growth through bolt-on acquisitions of leading brands into fast-growing categories with attractive margins.Benno Dorer, Chief Executive Officer, The Clorox Company
Advisory firms were not disclosed for this transaction.