Del OTC Acquisition Brings Orajel To Church & Dwight In $380 Million Deal
This article was originally published in The Tan Sheet
Executive Summary
Church & Dwight agreed to acquire Del Pharmaceuticals' OTC brands, including the Orajel topical analgesic line, for $380 million in cash from Coty, Inc., the firm said April 1
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Church & Dwight is actively pursuing acquisitions in the personal care sector, expecting a lack of bidders to keep brand prices low
CARU disapproves of Orajel ad
Church & Dwight will discontinue ads for Orajel Toddler Training Toothpaste during children's programming hours in response to concerns the Children's Advertising Review Unit expressed in its routine monitoring program. The Council of Better Business Bureaus division says Dec. 10 that the product's "Keep out of the reach of children" label makes advertising directly to children inappropriate. In November, CARU made a similar decision for Johnson & Johnson's Clean & Clear ad on Nickelodeon (1"The Tan Sheet" Dec. 1, 2008, p. 16). C&D says that with its April acquisition of Del Pharmaceuticals' OTC brands, including Orajel, it assumed the advertising placement schedules (2"The Tan Sheet" April 7, 2008, p. 3). In the commercial, a child brushes his teeth while a voice outlines the benefits of Orajel toothpaste. CARU says there is no parental presence or adult supervision
Sales & Earnings In Brief
Perrigo raises guidance: The private label firm raises its full-year fiscal 2009 earnings guidance by 2 cents per share after reaching record sales and earnings in its first quarter, CEO Joe Papa says during a Nov. 6 earnings call. Perrigo says it is increasing earnings guidance to between $1.92 and $2 per share. Net sales climbed 25 percent to $480 million and net income jumped 12 percent to a first-quarter record of $38 million, Papa said. The Allegan, Mich.-based company's consumer health care sales rose to $366.2 million due in part to $66.8 million in new product sales led by its OTC proton pump inhibitor (omeprazole), ceterizine-containing products and Famotidine Complete antacid, according to a same-day release. Perrigo's consumer health care net sales were up 37 percent, an increase of nearly $100 million, Papa said. He noted the firm's recent acquisitions of U.K. private-label supplier Galpharm, Mexican store-brand company Laboratorios Diba and Michigan contract manufacturer JB Labs, and said Perrigo looks to grow more internationally (1"The Tan Sheet" Oct. 13, 2008, p. 3)