Clorox Acquires Gojo Industries for $2.25 Billion

By Chris Stiles • Friday, January 23 03:45 • Permanent Link

Clorox Company (NYSE: CLX) has announced the acquisition of Gojo Industries for $2.25 billion in cash, which includes anticipated tax benefits valued at approximately $330 million for a net purchase price of $1.92 billion. This acquisition is expected to strengthen Clorox's position in health and hygiene, specifically in the skin hygiene segment. Gojo Industries, founded in 1946, has achieved nearly $800 million in annual sales with a three-year compound annual growth rate (CAGR) of 5%. Its hand hygiene solutions generate more than 80% of revenue through a broad and stable network of business-to-business (B2B) distributors. The Purell brand, known for safe and effective hygiene, holds the number one share position in hand sanitizer across both B2B and retail channels.

Following this acquisition, Clorox expects to realize at least $50 million in run-rate cost synergies and anticipates the transaction to be accretive to its adjusted EBITDA margins after the realization of run-rate cost synergies. Moreover, the transaction is expected to be neutral in the first year and accretive to Clorox's adjusted EPS in the second year. The company plans to fund the transaction primarily through debt financing and anticipates completing the transaction before the end of its fiscal year 2026, subject to regulatory approval and customary closing conditions.

In terms of financial performance, excluding the impact from the transaction, Clorox reaffirms its fiscal year 2026 outlook for net sales, diluted EPS, and adjusted EPS as provided in its November 3, 2025, earnings release when the company guided to the lower end of the range.

Clorox's strategic rationale behind the acquisition of Gojo includes expanding its position in health and hygiene, capitalizing on attractive category tailwinds, accelerating Purell's growth opportunities in retail, and driving further growth and profitability with enhanced B2B reach and capabilities.

The market has reacted to these announcements by moving the company's shares -1.12% to a price of $109.98. If you want to know more, read the company's complete 8-K report here.

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