Clorox to acquire GOJO Industries in USD 2.3B deal
Together, the companies aim to merge their strengths to deliver unmatched hygiene offerings globally.
USA – The Clorox Company is set to acquire GOJO Industries, the renowned maker of Purell hand sanitizer, in a USD 2.25 billion cash deal that nets approximately USD 1.92 billion after USD 330 million in expected tax benefits.
This strategic move significantly broadens Clorox’s footprint in the health and hygiene sector, particularly by integrating skin hygiene solutions tailored for both consumer and institutional markets.
The transaction aligns seamlessly with Clorox’s IGNITE growth strategy, propelling its highest-performing segment forward.
GOJO’s valuation reflects an adjusted EBITDA multiple of 11.9x post-tax benefits and 9.1x when accounting for projected run-rate cost collaboration.
The company generates close to USD 800 million in annual revenue, achieving a three-year compound annual growth rate (CAGR) of 5%, driven by steady mid-single-digit expansion through its robust B2B distributor channels and a network of 20 million deployed dispensers that ensure reliable, recurring income.
Hand hygiene products account for more than 80% of GOJO’s sales, with Purell dominating market share in professional B2B settings and retail hand sanitiser outlets.
Clorox plans to leverage its extensive distribution networks, R&D capabilities, and operational scale to accelerate Purell’s expansion in consumer channels, while GOJO’s deep B2B knowledge bolsters Clorox’s professional products division.
This acquisition promises growth-accretive impacts, fostering a more uniform and lucrative health and wellness portfolio.
Linda Rendle, chair and chief executive officer of The Clorox Company, stated, “GOJO’s deep commitment to innovation and delivering superior value in skin hygiene has built Purell into one of the most trusted names in homes, healthcare facilities, schools and businesses around the world – a name that is virtually synonymous with skin hygiene.”
“This is a compelling acquisition that evolves our portfolio and scales our fastest growing, most profitable operating segment – Health and Wellness – as we execute our IGNITE strategy to deliver long-term shareholder value.”
The acquisition is set to conclude by the end of Clorox’s fiscal 2026, subject to customary regulatory clearances, with financing primarily sourced from debt issuance.
Clorox’s fiscal 2026 forecasts for net sales, diluted EPS, and adjusted EPS remain intact, excluding any contributions from the deal.
GOJO, established in 1946 in Akron, Ohio, revolutionized the industry with early hand cleaners and breakthroughs such as Purell alcohol-based sanitizer and innovative touchless dispensers, catering to diverse sectors including healthcare facilities, educational institutions, and food service operations.
Clorox, with roots dating to 1913 in Oakland, California, emphasizes sustainable practices across its portfolio of trusted brands like Clorox bleach, Glad bags, and Burt’s Bees personal care, spanning household essentials and international operations.
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