NEW YORK (AP) — Church & Dwight Co. said Monday that it will buy Avid Health Inc. for $650 million to expand into the vitamins business.
Church & Dwight, which makes Arm & Hammer baking soda, Aim toothpaste and other products, said Avid Health makes gummy form supplements including Vitafusion for adults and L'il Critters for children. Its sales in the 12 months ended in June totaled $230 million.
Earlier this month, Princeton, N.J.-based Church & Dwight reported a 4 percent decline in second-quarter net income. The company said Monday the deal is consistent with its strategy of strengthening its business by acquiring brands with high growth potential.
The company projected annual cost savings of about $15 million in 2014 once it integrates Avid.
It will finance the purchase with a combination of debt and cash and expects the transaction to reduce this year's earnings and to add to earnings starting next year.
Church & Dwight said it still expects to earn $2.41 to $2.43 per share this year on an adjusted basis and forecast 2013 earnings per share between $2.73 and $2.78.
Analysts surveyed by FactSet forecast a profit of $2.42 per share this year and $2.66 per share next year.
The purchase is subject to regulatory approval and other conditions and is expected to close early in the fourth quarter.