* Signed deal on Aug. 17
* Expects deal to dilute 2012 earnings by 2 cents/share
* Expects deal to add 2013 earnings/share
Aug 20 Consumer goods maker Church & Dwight Co
Inc will buy privately held Avid Health for $650 million
in cash to take advantage of the growing nutritional supplement
The company said Avid's gummy vitamins business provides a
new growth platform in the fast-growing vitamin, mineral,
Church & Dwight, which makes the Arm & Hammer baking soda,
expects the deal to dilute its 2012 earnings by 2 cents per
share, but add to its 2013 earnings. Including Avid, the company
expects to earn between $2.39 and $2.41 per share in 2012.
Analysts on average were expecting earnings of $2.42 per
share, according to Thomson Reuters I/B/E/S.
Avid, which has brands such as Vitafusion and L'il Critters,
had net sales of about $230 million for the trailing twelve
months through June 30.
Church & Dwight, which signed the deal on Aug. 17, expects
to finance the acquisition with a combination of debt and cash.
The deal is expected to close early in the fourth quarter, it
said in a statement.
Shares of the Princeton, New Jersey-based Church & Dwight
were up 2 percent at $54.00 after the bell. They had closed at
$53.04 on the New York Stock Exchange on Monday.