UPDATE: Church & Dwight (CHD) to Acquire Avid Health in $650M Deal; Affirms FY12 Outlook, Guides FY13 EPS Above Views

August 20, 2012 4:46 PM EDT
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(Updated - August 20, 2012 4:49 PM EDT)

On August 17, 2012, Church & Dwight Co., Inc. (NYSE: CHD) entered into a Stock Purchase Agreement (the “Agreement”) with Avid Health, Inc. (“Avid Health”), the stockholders of Avid Health and the Seller Representative, pursuant to which the Company agreed to acquire all of the issued and outstanding capital stock of Avid Health. Avid Health is a leader in the vitamin, mineral, and supplement category. Its products, among others, include L'il Critters® children’s gummy vitamins and Vitafusion® adult gummy vitamins. Pursuant to the terms of the Agreement, the total purchase price, which is subject to adjustment based on the closing working capital of Avid Health and its subsidiaries, consists of total cash consideration of $650 million. The Company expects to finance the acquisition with a combination of debt and cash.

The closing of the transaction is expected to occur early in the fourth quarter of 2012 and is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions.

The company said it continues to expect diluted earnings per share for 2012 to be in the range of $2.41 to $2.43, excluding the ($0.02 EPS) dilutive effect of the Avid acquisition. Including Avid, the expected earnings range for 2012 is $2.39 to $2.41.

Also sees FY13 EPS of $2.73 to $2.78.

The Street is looking for FY12 EPS of $2.42 and FY13 EPS of $2.66.

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