Church & Dwight completes $580M TheraBreath acquisition

The No. 2 alcohol-free mouthwash brand in the U.S. is now officially a part of Church & Dwight Co. Inc.

The Ewing-based company announced it completed its acquisition of TheraBreath for $580 million in cash. The deal was announced in November.

In a statement, Church & Dwight Chief Executive Officer Matthew Farrell highlighted the oral care sector as strategically important to the company. Among its other featured brands in the space are Spinbrush, Orajel and Waterpik.

Farrell

“TheraBreath will be the company’s 14th power brand and represents a powerful addition to our existing oral care portfolio …. The TheraBreath brand is a problem/solution product and one of the fastest growing brands in the mouthwash category,” Farrell said. “This acquisition gives Church & Dwight a strong position in a growing category with tailwinds as the brand skews towards younger consumers and consistently has a high level of brand loyalty and repeat purchase.”

When the acquisition was unveiled on Nov. 29, Church & Dwight said TheraBreth’s net sales for the 12 months through Sept. 30, 2021, were approximately $86 million. And its trailing 12 months EBITDA as of September 2021 was approximately $27 million, with a 31% EBITDA margin.

Church & Dwight said at that time it expects its existing distribution network, manufacturing capabilities and operating efficiencies could produce an estimated $6 million in run rate operating synergies by 2023. While international represents less than 10% of net sales for TheraBreath, Church & Dwight said it expects to expand that distribution through its international purview.

TheraBreath’s annual net sales are projected to grow approximately 15% to $100 million in 2022, Church & Dwight said back in November, and adjusted EBITDA is expected to be $36 million, including $4 million of synergies. The adjusted 2022 EBITDA estimate excludes approximately $7 million in one-time transition and transaction-related expenses.