WASHINGTON (dpa-AFX) - Church & Dwight Co., Inc. (CHD) said Tuesday it has completed the acquisition of Matrixx Initiatives, Inc., the owner of the Zicam brand for $530 million. The company noted that the acquisition was structured as a stock purchase that was financed by the company with a combination of cash and debt.
Zicam is a zinc supplement in the U.S. in the VMS (vitamins, minerals, and supplements) cough/cold shortening category. Zicam shortens the duration of a cold using zinc as the core active ingredient.
Church & Dwight noted that Zicam's annual net sales are projected to be about $90 million in 2021, while its EBITDA is expected to be approximately $36 million.
Following the integration of Zicam, Church & Dwight expects to leverage its distribution network and support functions to generate anticipated annual cost savings of about $5 million by 2022.
The company expects Zicam is to be about 3 percent accretive to cash earnings in 2021. The acquisition is expected to be neutral to the fourth quarter of 2020 earnings per share and neutral to fiscal 2021 earnings per share due to intangible amortization, interest expense, transition expenses, and higher marketing spending.
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