LONDON, UK / ACCESSWIRE / July 19, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Church & Dwight Co., Inc. (NYSE: CHD), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=CHD. The Company announced on July 17, 2017, that it has entered into an agreement to acquire Water Pik, Inc. from MidOcean Partners, a premier middle market private equity firm focused on consumer and business services, for approximately $1 billion in cash. Water Pik is a market leader in waterjet technology in both oral water flossers and replacement showerheads in United States. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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The transaction is subject to customary closing conditions and regulatory approvals from concerned organizations and is likely to close in Q3 2017. The acquisition is structured as a stock purchase that the Company expects to finance with debt and is likely to be neutral to 2017 EPS, inclusive of transition costs, acquisition-related expenses, interest expense and intangible amortization expense.

Senior Management's Views

Church & Dwight's Chief Executive Officer, Matthew T. Farrell, said:

"Oral care is important to us strategically. Waterpik represents a powerful addition to our existing oral care portfolio which includes ARM & HAMMER toothpaste, SPINBRUSH battery-operated toothbrushes, and ORAJEL oral analgesics. The flosser products business is a fast-growing platform and capitalizes on the trends of increased gum disease, oral care awareness across all demographics and expansion of the middle-class in emerging markets. The Waterpik brand has a strong reputation among dental care professionals. Our oral care portfolio gives Church & Dwight a leading position in a growing category with tailwinds as the population ages and consumer interest in oral health continues to expand."

Commenting on the acquisition, Ted Virtue, Chief Executive Officer of MidOcean Partners, expressed:

"Waterpik has been a successful investment for MidOcean and demonstrates the expertise we are able to provide branded consumer product companies. We have enjoyed the opportunity to partner with CEO Richard Bisson and the Waterpik team, and believe the Company is well-positioned for continued growth under Church & Dwight."

Water Pik's Net Sales Status

Water Pik's net sales for the year ended June 30, 2017, were approximately $265 million. Around 70% of net sales are in the water flosser segment with remaining portion in showerheads. The overseas business reports about 20% of sales.

Water Pik will be Church & Dwight's 11th Power Brand

Water Pik's EBITDA for the year ended on June 30, 2017, was approximately $80 million (30% EBITDA margin). Following the completion of the acquisition, Church & Dwight expects to leverage its distribution network to reach an estimated $10 million in operating synergies by 2019. The acquisition of Water Pik is in accordance with Church & Dwight's strategy of acquiring #1 or #2 brands in areas with growth potential. Water Pik will be Church & Dwight's 11th power brand. Church & Dwight intends to maintain the Water Pik's Fort Collins facility.

2018 EPS Outlook Announcement

News release suggests that Church & Dwight's continues to expect 2017 EPS to be $1.75 to $1.77 and adjusted EPS to be $1.92, consistent with its previous outlook, inclusive of the neutral EPS effect of the acquisition. The Company expects to deliver around 18% reported EPS growth in 2018, as 2017 reported EPS includes previously disclosed charges related to the Brazil Specialty Products business and the settlement charges related to its UK pension.

Church & Dwight's expect to deliver 9% adjusted EPS growth ($2.09) driven by 7% EPS growth of its existing business, plus 3% accretion from the Water Pik's acquisition inclusive of interest and intangible amortization expenses. One time transition costs will negatively impact EPS by 1%.

Financial and Legal Advisors

BofA Merrill Lynch was the financial advisor for Church & Dwight, while Harris Williams and Wells Fargo advised MidOcean Partners. Proskauer Rose LLP and Kirkland & Ellis LLP acted as legal advisors to Church & Dwight and MidOcean Partners, respectively.

About Church & Dwight Co. Inc.

Founded in 1846, Church & Dwight manufactures and markets a range of household, personal care, and specialty products under the ARM & HAMMER brand name and other well-known trademarks. The Company's segments include Consumer Domestic, Consumer International, and Specialty Products Division (SPD). The Company is headquartered in Ewing, New Jersey.

About MidOcean Partners

Established in 2003, MidOcean Partners is a New York-based alternative asset manager that specializes in middle market private equity and alternative credit investments. The Company acquired Water Pik, Inc., along with Vulcan Capital and Northwestern Mutual, on July 09, 2013.

Last Close Stock Review

Church & Dwight's share price finished yesterday's trading session at $53.63, slightly up 0.56%. A total volume of 1.23 million shares has exchanged hands. The Company's stock price surged 5.78% in the last three months, 20.46% in the past six months, and 7.43% in the previous twelve months. Additionally, the stock rallied 21.36% since the start of the year. Shares of the Company have a PE ratio of 29.32 and have a dividend yield of 1.42%. The stock currently has a market cap of $13.63 billion.

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