Clorox Co. Goes Shopping
Posted on February 19, 2010Clorox Co., the world's largest maker of bleach, is going shopping. It has between 300 and 500 million dollars burning a hole in its corporate pockets and wants to start expanding. It already purchased Burt's Bees for $925 million. So what will Clorox buy next? Perhaps a company that sells disinfectant to hospitals. Bloomberg reports:
The ideal price range for an acquisition is $300 million to $500 million, said Heinrich. Clorox would be interested in bolt-on transactions in international markets, such as Latin America and Asia, especially laundry and household-care brands, he said.Disinfectants are hot items these days with all the swine flu outbreaks in the past year. And because germs aren't going away any times soon, the need for disinfectant will most likely remain steady.
The company, based in Oakland, California, also would consider acquisitions in the professional or industrial market, such as Caltech Industries Inc., which Clorox bought this year for $23 million. Caltech sells disinfectants to hospitals. Companies in the natural-products segment would be a complement to Burt's Bees, which Clorox acquired in 2007 for $925 million, Heinrich said.
Clorox rose 11 cents to $61.01 at 4:10 p.m. in New York Stock Exchange composite trading. The shares climbed 9.8 percent last year. Heinrich said Clorox has taken a look at Sara Lee Corp.'s Australian bleach brand, White King, which has been for sale since March. Sara Lee is trying to sell some brands, including Kiwi shoe polish, as a bundle, and Clorox is interested only in the bleach, he said.