The Clorox Co. (NYSE: CLX) acquired probiotics maker Renew Life Holdings Corp. from Swander Pace Capital for about $290 million in cash, as the company focuses its portfolio on health products.
Renew Life, located in Clearwater, Florida, produces health care supplements that are designed to help with digestive disorders. The target is known for its Ultimate Flora brand. According to Oakland, California-based Clorox, two-thirds of the U.S. adult population has experienced digestive issues in the past 12 months, adding that number will likely increase due to dietary habits.
"For more than 100 years, the Clorox portfolio has been firmly rooted in health and wellness, first through the disinfecting properties of bleach, and later extending into Brita and Burt's Bees to meet the needs of health conscious consumers," says Clorox CEO Benno Dorer. "The Renew Life acquisition is consistent with our strategy to accelerate growth through bolt-on acquisitions of leading brands into fast-growing categories with attractive margins.” Clorox reported two percent sales growth for the quarter ended Mar. 31.
Clorox purchased water filter maker Brita in 1995. The company also added skin care company Burt's Bees in 2007.
Earlier in 2016, Swander Pace purchased vitamin retailer Swanson Health Products. For more on M&A in the vitamins sector, see Supplement Deals Flourish, Even After Investigations. Rothschild advised Swander Pace on the Renew Life Deal.