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The Clorox Company announced that it has entered into a definitive agreement to acquire GOJO Industries for $2.25 billion in cash, including anticipated tax benefits valued at approximately $330 million, for a net purchase price of $1.92 billion. Adding Purell to Clorox's portfolio of brands expands Clorox's position in health and hygiene for both consumers and institutional end users.

"This is a momentous day for all of us at GOJO," Carey Jaros shares, President and CEO of GOJO Industries. "GOJO and Clorox are united by our shared commitment to make the world a cleaner and healthier place. Clorox brings world-class consumer expertise and the resources to accelerate our growth in retail channels. I'm incredibly excited about what's ahead as we combine our leading brands, talented organizations, and complementary capabilities to deliver best-in-class health and hygiene solutions to customers across the world. And I'm proud to carry forward the 80-year legacy of the Lippman Kanfer Family, who founded and led the business for three generations in Northeast Ohio."

Founded in 1946 by Goldie and Jerry Lippman, GOJO has grown to nearly $800 million in annual sales and has a long history of delivering mid–single-digit growth with a three-year compound annual growth rate (CAGR) of 5 percent. Its portfolio of hand hygiene solutions generates more than 80 percent of revenue through a broad and stable network of business-to-business (B2B) distributors underpinned by roughly 20 million soap and sanitizer dispensers that drive recurring demand.

"GOJO's deep commitment to innovation and delivering superior value in skin hygiene has built Purell into one of the most trusted names in homes, healthcare facilities, schools, and businesses around the world. This strong foundation, coupled with a large installed base and deep relationships in the fast-growing B2B channel, has driven decades of consistent performance," says Linda Rendle, Chair and CEO of The Clorox Company. "This is a compelling acquisition that evolves our portfolio and scales our fastest growing, most profitable operating segment—health and wellness—as we execute our IGNITE strategy to deliver long-term shareholder value."

Strategic Rationale

The acquisition of GOJO is expected to deliver both near- and long-term strategic benefits to Clorox.

  • Advances Portfolio Evolution to Strengthen Strategic Advantage: Expands Clorox's position in health and hygiene with a renowned and trusted brand in Purell—expanding reach across B2B and retail channels.
  • Capitalizes on Attractive Category Tailwinds: Provides exposure to sizeable and growing categories underpinned by favorable macro and consumer tailwinds where brand trust provides differentiation.
  • Accelerates Purell's Growth Opportunities in Retail: Brings the renowned Purell brand into Clorox's strong portfolio of trusted consumer brands, where it will be able to benefit from Clorox's proven brand-building, consumer-led innovation, retailer relationships, and distribution capabilities.
  • Drives Further Growth and Profitability with Enhanced B2B Reach & Capabilities: Combines GOJO's commercial, manufacturing, research and development, and regulatory capabilities with Clorox's strengths to create a best-in-class B2B platform.
  • Brings Together Two Complementary Organizations: Cultural and organizational compatibility with a strong management team and talent creates a solid foundation to drive meaningful, long-term value. GOJO will continue to be based in Ohio, and strategic integration will help ensure the combined businesses and all customers realize the benefits of the companies' joint capabilities.

Delivers Strong Financial Returns

The transaction is expected to accelerate the financial performance of the company and create long-term shareholder value.

  • Contributes a recurring revenue and stable earnings base to Clorox
  • Accretive to growth and supports Clorox's long-term sales growth target of 3 to 5 percent
  • Poised to generate at least $50 million in run-rate cost synergies, leveraging Clorox's scale and holistic margin management capabilities
  • Accretive to Clorox's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins after realization of run-rate cost synergies, neutral in the first year
  • Accretive to Clorox's adjusted earnings per share (EPS) in the second year; neutral in the first year