Clorox Company Shares Increase Following Deal to Sell Auto Care Business for $780 Million in Cash
Clorox Company, after reports Monday indicating that it is selling the division that produces car-care brands to a private equity, firm, will sell the auto care business for $780 million in cash.The deal was announced Tuesday with Avista Capital Partners. The private equity firm will get the well-known brands like Armor All and STP, which are sold primarily in the U.S., Australia, Canada and Europe.In May Clorox Company announced it was exploring options for the business, which had $300 million in sales last year, amounting to about 5% of the total revenue.Clorox makes its namesake cleaning products as well as Fresh Step cat litter, Kingsford charcoal and Hidden Valley Ranch salad dressing.After the deal was announced Tuesday shares hit a 52-week high of $67.86.Clorox Company is based in Oakland, California. The company plans to transfer at least 500 workers from its Oakland headquarters to a new research operation in Pleasanton. While Clorox officials say they intend to keep the corporate headquarters in downtown Oakland, the loss of hundreds of jobs is a blow to the city.The deal is subject to regulatory and other approvals and is expected to close by the end of the year.