Clorox to Purchase Gojo Industries (Purell Maker) for $2.25 Billion

Clorox, a company and brand you may know for bleach products, is purchasing Gojo Industries for $2.25 billion, according to The Wall Street Journal.

Gojo Industries, based out of Akron, Ohio, is the company behind the popular hand sanitizer Purell.

With this deal, Clorox will have even more consumer products under its umbrella. 

More About the Deal

According to a press release, the deal is $2.25 billion in cash, "including anticipated tax benefits valued at approximately $330 million for a net purchase price of $1.92 billion."

With this acquisition, Clorox will expand further into health and hygiene categories. 

"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 – a name that is virtually synonymous with skin hygiene. This strong foundation, coupled with a large installed base and deep relationships in the fast-growing B2B channel has driven decades of consistent performance," said Linda Rendle, chair and chief executive officer 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." 

During the pandemic, Gojo saw a massive surge in sales and demand as people bought Purell to help protect against the virus. Right now, sales are about $800 million annually, with an average growth of 5% over the last three years. 

The product was invented in 1988, and Gojo acquired it from Johnson & Johnson in 2010. 

The Journal first reported in April 2023 that Gojo was seeking a buyer, with a valuation of around $3 billion. 

"This is a momentous day for all of us at GOJO," said Carey Jaros, president and chief executive officer of GOJO Industries. "GOJO and Clorox are united by our shared commitment to make the world a cleaner and healthier place. I have long admired Clorox's ability to create great consumer brands and products that are beloved in households around the world. Clorox brings world-class consumer expertise, and they have 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."

More About Clorox the Company

Clorox offers brands such as Glad, Liquid-Plumr, Burt's Bees, and Kingsford. With this deal, Clorox believes it will help boost growth and support long-term sales growth of 3% to 5%. The company expects to close the deal by June, save at least $50 million by cutting costs, and begin increasing profits per share by the second year of ownership. 

Clorox's current stock price is $113.48, up 1.14% today.