The Clorox Company is to sell its global auto care business, including the brands Armor All and STP, to a private equity firm for $780 million.
Avista Capital Partners, with offices in New York and Houston and holdings in energy, health and media, will acquire two auto care manufacturing facilities from Clorox, one in Painesville, Ohio with 70 employees, and one in Wales, in the UK, with 24. All employees will transfer to the buyer.
"We believe this transaction is in the best interest of shareholders as we seek to reshape our portfolio," said Clorox chairman and CEO Don Knauss. "As we have acknowledged in the past, our auto care business does not align as strongly with our strategy to focus on key consumer megatrends such as health and wellness and sustainability. The auto care brands hold leading market-share positions and we're pleased to have identified a new growth-oriented owner who will continue to work with the talented auto care team to build on this strong foundation."
Clorox’ core business is the manufacture and marketing of consumer products, with 8,300 employees and fiscal year 2010 revenues of $5.53 billion. As well as the eponymous cleaning products, its brands include Pine-Sol cleaners, Poett home care products, Hidden Valley and K C Masterpiece dressings and sauces, Brita water-filtration products, Glad bags and containers, and Burt's Bees natural personal care products.
In its last fiscal year, ended June 30, 2010, the auto care businesses had global sales of around $300 million and generated earnings before interest and taxes of about $90 million.
The transaction, which is subject to regulatory and other customary approvals and closing conditions, is expected to close by the end of this calendar year.
