Church & Dwight Acquires Acne Treatment Products Maker Hero For $630M - Church & Dwight Co (NYSE:CHD)

Church & Dwight Co Inc CHD has entered into an agreement to acquire cosmetics brand Hero Mighty Patch and other acne treatment products for $630 million.
The deal consists of cash and Church & Dwight restricted stock.
The transaction is expected to be completed in the fourth quarter.
Hero’s net sales for the trailing twelve months through June 30, 2022, were about $115 million.
Church & Dwight is planning to expand Mighty Patch’s limited distribution by leveraging its U.S. retailer relationships and international footprint.
Hero’s founders are expected to remain and continue to run the business. The brand’s employees will also be retained.
“Mighty Patch represents a powerful addition to our existing Specialty Hair and Skin portfolio which includes Nair, Batiste, Viviscal, Flawless, and Toppik,” said CEO Matthew T. Farrell.
Church & Dwight expects FY22 sales growth of 2% to 4% (previously 4% to 5%) and Q3 sales to decline1% (previously growth midpoint of 3%) due to a demand constraint.
The company held $639.7 million in cash and equivalents as of June 30, 2022.
Price Action: CHD shares traded lower by 2.91% at $81.73 on the last check Tuesday.