Clorox just spent $2.25B to acquire Purell maker GOJO Industries. The deal increases CLXs exposure to the health and wellness category (durable brand economics and high trust sensitivity) with GOJO being an 80% B2B player, complimenting CLXs 80% retail focus.
Reasonable valuation with room for synergies: procurement scale benefits, overhead reduction, expanding Purells retail presence.
What do you guys think of the deal? Net Positive or Net Negative for the stock at \~$113?
I personally think it’s a strong net positive for brand durability. Clorox’s portfolio is now filled with earned monopolies ( business having #1 or #2 market share position in stable categories)