Church & Dwight Co. , the maker of Arm & Hammer toothpaste, said Monday it will acquire Water Pik for about $1 billion, giving it access to the fast-growing water flosser market.
Water Pik generated net sales of about $265 million in the 12 months ended June 30, with about 70% of those sales coming from its top-selling Waterpik water-jet flosser brand. The company also makes electric toothbrushes and replacement showerheads.
“Waterpik represents a powerful addition to our existing oral care portfolio,” Church & Dwight CEO Matthew T. Farrell said in a news release. “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.”
Church & Dwight will purchase Fort Collins, Colo-based Waterpik from private equity firm MidOcean Partners, which acquired the company in 2013 from an affiliate of EG Capital Group and Zodiac Marine & Pool.
The Water Pik Water Flosser, cleans teeth by using a pump to send a water jet through a plastic tip. According to Church & Dwight, it is the No. 1 water flosser brand in the U.S.
Church & Dwight’s oral care portfolio also includes Spinbrush battery-operated toothbrushes and Orajel oral analgesics. “The acquisition is consistent with our strategy of acquiring #1 or #2 brands in areas with growth potential,” Farrell said.
Waterpik’s trailing twelve months EBITDA was approximately $80 million, a 30% EBITDA margin. Once the business is fully integrated, Church & Dwight expects to leverage its distribution network and operating discipline to achieve an estimated $10 million in operating synergies by 2019.
Farrell said Church & Dwight intends to maintain Water Pik’s Fort Collins facility. “This business has a highly capable management team, and we are pleased to welcome them to the Church & Dwight family,” he said. “Waterpik is nimble and asset light and should be an excellent fit.”