Clorox to Acquire Burts Bees for $925 Million

OAKLAND, Calif.The Clorox Co. (NYSE:CLX) has agreed to purchase 100 percent of Burts Bees®, a leader in the natural personal care category, in a transaction structured as a merger. The purchase price is set at $925 million net, with an additional $25 million payment for anticipated tax benefits. The transaction is expected to close by the end of 2007, but is subject to regulatory approval.The acquisition will strengthen Cloroxs (www.thecloroxcompany.com) strategy to pursue growth in areas aligned with consumer megatrends such as natural health and wellness, sustainability, convenience and a multicultural marketplace. With this transaction, were entering into a new strategic phase for our company, enabling us to expand further into the natural/sustainable business platform, said Cloroxs chairman and CEO, Donald R. Knauss. We strongly believe Cloroxs deep capabilities to drive demand creation through consumer communication and value-creating customer capabilities, coupled with Burt Bees strong heritage of innovation to delight consumers, create a right to win, added Beth Springer, Clorox executive vice president, strategy and growth, who will oversee the business.Burts president and CEO, John Replogle, will continue to lead Burts (www.burtsbees.com), which will remain based in North Carolina. The Clorox Company and Burts Bees have complementary values, visions and strengths. Together, I believe Clorox and Burts Bees can help this business realize its full potential, he said.According to current growth trajectory and estimated 2007 net customer sales of about $170 million, Burts Bees is expected to add nearly two points of top-line growth to Clorox in fiscal years 2008 and 2009. Clorox also noted the transaction will dilute its fiscal year 2008 earnings by about 10 to 15 cents per share.