The Clorox Company has clinched a deal to acquire GOJO Industries, the Akron-based company known for producing Purell hand sanitizer, with a hefty price tag of $2.25 billion. The cash agreement, announced on Thursday, adds the widely recognized Purell brand to Clorox's expansive health and wellness portfolio. According to a release issued by Clorox, as WKYC reports, the transaction also includes anticipated tax benefits valued at about $330 million, bringing the net purchase cost to about $1.92 billion.
Established in 1946 by Goldie and Jerry Lippman, GOJO generated nearly $800 million in annual sales, the company reports. In a move anticipated to maintain its steady mid-single-digit growth, over 80% of its revenue streams from a robust network of business customers, buoyed by 20 million soap and sanitizer dispensers worldwide. Clorox's CEO, Linda Rendle, expressed that this acquisition plays into the company's pursuit of long-term growth, stating in an interview obtained by WKYC that "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."
Although the pandemic has waned, hand sanitizer remains a staple in hygiene practices, highlighting the relevance of this acquisition. Despite previous attempts to sell the company in 2023, it wasn't until now that GOJO Industries found its match with Clorox. GOJO President and CEO Carey Jaros expressed enthusiasm about the transition, asserting in a Bizjournal news release that Clorox's consumer expertise will bolster GOJO's growth, "particularly in retail channels," according to WKYC.
The move by Clorox has been strategized to elevate its position in the market, leveraging Purell's strong presence in the industry. After sustained high demand during the pandemic, the hand hygiene product landscape continues to prove lucrative. Clorox's plan to fund much of this agreement through debt financing acknowledges the strong financial footing and anticipated tax benefits amounting to $330 million, as detailed in an Axios report. It stands as a testament to the enduring priority placed on sanitation and the potential for continued hand sanitizer habits.
This marks a significant shift for GOJO Industries, which has been a family-owned business for nearly 80 years. Selling to Clorox was described as a bittersweet decision by the Kanfer family, yet necessary for expanding at the scale and speed required to sustain their industry lead, according to WKYC. With the Clorox acquisition now public, the company is poised to keep making strides in the health and wellness category, backed by Purell's strong market presence and Clorox's vast consumer reach.
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