CLOROX CO /DE/ acquires Nutranext (Nutranext, LLC and New NeoCell, LLC)

CLOROX CO /DE/ acquired Nutranext (Nutranext, LLC and New NeoCell, LLC) for $700 million (about 3.5x calendar year 2017 sales), a transaction completed in April 2018, structured as combination (available cash and debt financing).

Nutranext (Nutranext, LLC and New NeoCell, LLC) operates in Health & Wellness - Dietary supplements, is based in United States (Sunrise, Florida); ~90% of sales in the U.S., had revenue of about About $200 million in calendar year 2017 sales. Nutranext is a health and wellness company based in Sunrise, Florida that manufactures and markets leading dietary supplement brands across retail, e-commerce and direct-to-consumer channels. Brands include Rainbow Light multivitamins (No. 2 vitamin brand in the natural channel), Natural Vitality specialty minerals (No. 1 anti-stress and sleep brand in the natural channel), NeoCell hair/skin/nails supplements, and the direct-to-consumer Stop Aging Now brand. About 90 percent of Nutranext sales are in the U.S. In calendar year 2017 Nutranext generated sales of about $200 million.

Adding Nutranext is consistent with Clorox's strategy to accelerate growth through acquisitions of leading brands in fast-growing categories with attractive gross margins and a focus on health and wellness. It brings significant scale and breadth to Clorox's dietary supplements business, following the May 2016 Renew Life acquisition.

Leading supplement brands in fast-growing, attractive-gross-margin health and wellness categories; significant scale and breadth added to the supplements platform begun with Renew Life. Expected to dilute EPS by 7-11 cents in Q4 FY2018 and 8-12 cents in FY2019, then be accretive in FY2020; acquired through subsidiary ReNew Life Holdings Corporation. Clorox Health and Wellness segment, under ReNew Life Holdings Corporation