Clorox Co. will acquire Burt's Bees Inc. for $925 million in cash, including an additional $25 million payment for anticipated tax benefits. Burt's Bees was acquired by AEA Investors LLC in 2003 for about $180 million. Roxanne Quimby, a founder, owns 20% of the company.

The target, a leading manufacturer of earth-friendly natural personal-care products, is right in line with Clorox's Centennial Strategy: to pursue growth in areas aligned with consumer "megatrends" in health and wellness, sustainability, convenience and a more multicultural marketplace.

Oakland, Calif.-based Clorox said the earnings-per-share impact is anticipated to be "solidly accretive" in fiscal year 2009. The transaction is expected to close by year's end. Morrison & Foerster LLP served as legal adviser to Clorox, with corporate group head Robert Townsend leading the team. Lehman Brothers Inc. was the financial adviser to Clorox, while Goldman, Sachs & Co. advised Burt's Bees, a maker of more than 150 products in categories such as lip care, face care, body care, hair care, men's grooming, baby care and outdoor remedies.

For Clorox's fiscal first quarter, which ended Sept. 30, sales grew 7% to $1.24 billion, compared with $1.16 billion in the same quarter a year ago. Net income for that period, however, dropped to $111 million from $112 million in the respective quarters. — Baz Hiralal

Go to the Clorox publication

Join Corporate Dealmaker's LinkedIn forum