Clorox to Acquire Burt's Bees

10/31/2007

This week, The Clorox Company announced it will acquire Burt's Bees, a brand that is regarded among many consumers who purchase natural personal care products as the "most natural" personal care brand and as the leading natural brand in the United States. The acquisition of Burt's Bees is strongly aligned with Clorox's Centennial Strategy to pursue growth in areas aligned with consumer "megatrends" in health and wellness, sustainability, convenience and a more multicultural marketplace.

"Burt's Bees is a compelling strategic fit for us, and we believe we can expand on its strong trends over time to build even greater value," says Beth Springer, executive vice president - Strategy & Growth for Clorox, who will oversee the business. "Burt's Bees has a highly effective strategy and plan, strong trade practices and organizational capabilities, and a robust culture and esprit de corps that we want to leverage and protect. We strongly believe Clorox's deep capabilities to drive demand creation through consumer communication and value-creating customer capabilities, coupled with Burt's Bees' strong heritage of innovation to delight consumers, create a right to win."

Under the terms of the agreement, Clorox will acquire 100 percent of Burt's Bees from its stockholders in a transaction that is structured as a merger. The company is acquiring Burt's Bees for $925 million net of an additional $25 million payment for anticipated tax benefits. The transaction, which is expected to close by the end of this calendar year, is subject to regulatory approval. Burt's Bees president and CEO John Replogle will continue to lead the company, which will continue to be based in North Carolina.