plans to buy a dietary-supplement maker for about $700 million, the company said Monday, as the owner of Pine-Sol cleaner and Hidden Valley dressing continues to diversify its business with a focus on health and wellness.
Nutranext, based in Sunrise, Fla., makes products such as Rainbow Light multivitamins, Natural Vitality specialty minerals, and Neocell supplements for hair, skin and nails. Nutranext’s sales were about $200 million last year, Clorox said, with 90% in the U.S.
Private-equity firm WM Partners LP owns Nutranext. Fort Lauderdale, Fla.-based WM Partners said that since its involvement in 2015, Nutranext has made four strategic acquisitions of nutritional supplements brands.
Makers of household products are trying varying approaches to jump-start growth amid slow industrywide sales and competition from lower-priced upstarts. With sluggish sales of household staples from diapers to razors, Clorox and rivals are branching out into categories in which they are able to command higher prices.
last year agreed to buy two professional skin-care lines, marking an entry into the business.
Clorox has moved beyond its namesake bleach and cleaning products into brands such as Burt’s Bees cosmetics and personal-care products and Brita water filters. Last year, it sold its Aplicare skin antisepsis business to a private health-care supply company.
The Nutranext deal, which Clorox expects to close by June 30, is subject to customary closing conditions. Clorox expects it will dilute earnings per share by 7 cents to 11 cents in its fourth quarter ending June 30 and by 8 cents to 12 cents in its fiscal year 2019. The company then expects Nutranext to add to earnings beginning in fiscal 2020.
Last month, the Oakland, Calif., company reported overall sales growth of 1% for the quarter ended Dec. 31, helped by double-digit volume gains in sales of wellness-related items such as digestive health products and water-filtration systems.
Clorox shares, down 5% over the past year, rose 0.7% in Monday trading.
—Sharon Terlep contributed to this article.
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