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Church & Dwight acquires Zicam brand for $530 million

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EWING, N.J.— Church & Dwight Co. has acquired Matrixx Initiatives Inc., the owner of the Zicam brand, for $530 million. The acquisition was structured as a stock purchase that the company financed with a combination of cash and debt.

“The acquisition of Zicam represents a superb addition to our existing portfolio and brings to our company the leading brand within zinc supplements, one of the fastest-growing sub-segments of the VMS category,” said Matthew Farrell, chairman and chief executive officer of Church & Dwight.

“This acquisition meets the company’s long-standing acquisition criteria. Specifically, Zicam is a (1) No. 1 brand in a niche category; (2) asset-light; (3) a growing brand, and (4) expected to be gross margin accretive to the company. We are excited about adding the company’s thirteenth power brand. Acquisitions have been a key driver of Church & Dwight’s consistently strong shareholder returns.”

Zicam’s annual net sales are projected to be approximately $90 million in 2021 and EBITDA is expected to be approximately $36 million. Once Zicam is fully integrated, Church & Dwight said it expects to leverage its distribution network, operating discipline and support functions to generate anticipated annual cost savings of approximately $5 million by 2022.

Zicam is expected to be approximately 3% accretive to cash earnings in 2021. The acquisition is expected to be neutral to Q4 2020 earnings per share (EPS) and neutral to 2021 EPS due to intangible amortization, interest expense, transition expenses, and higher marketing spending.


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