Clorox announced it has agreed to buy GOJO Industries, the company behind Purell®, for USD 2.25 billion in cash. After tax benefits, the net price is about USD 1.92 billion. This acquisition will reinforce Clorox’s position in the health and hygiene market, both for consumers as well as businesses.
GOJO, founded in 1946, has annual sales of nearly USD 800 million and has grown steadily over the years. Most of its revenue comes from hand hygiene products, especially Purell, which is the prominent hand sanitizer brand in both business as well as retail markets.
Why This Acquisition is Important for Clorox:
- Expands Clorox’s Brand Reach: Adding Purell aids Clorox in growing its presence in health as well as hygiene with a trusted brand, reaching both businesses and consumers.
- Taps into a Growing Market: The deal gives Clorox access to a growing market with strong demand for hygiene products.
- Boosts Purell's Retail Growth: By joining Clorox's portfolio, Purell can grow more in retail owing to Clorox's marketing, innovation, and strong relationships with retailers.
- Improves B2B Operations: Combining GOJO’s business capabilities with Clorox’s strengths will make a strong business-to-business (B2B) platform.
- Smooth Integration: GOJO will continue to operate from Ohio, and both companies plan to work well together for long-term success.
Executive Statement
According to Linda Rendle, chair and chief executive officer of The Clorox Company, 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. This is a compelling acquisition that evolves their portfolio and scales their fastest growing, most profitable operating segment – Health and Wellness - as they execute our IGNITE strategy to deliver long-term shareholder value.