Church & Dwight holding company to buy Del Labs
private investment firm Kelso have agreed to acquire cosmetics and
over-the-counter drugs manufacturer Del Laboratories.
Del Laboratories will be acquired by Church & Dwight and Kelso through investment vehicle DLI Holding for a purchase price of US385 million, plus the assumption of debts amounting to US$80 million.
The company markets and manufactures cosmetics and over-the-counter pharmaceuticals. Its major brands include nail protector Sally Hansen Hard as Nails plus beauty implements, lip colour, skin care, bleaches and depilatories all under the Sally Hansen brand franchise.
Other cosmetics and personal brand include Healing Beauty skincare cosmetics, Cornsilk cosmetic foundation products, Lacross nail and Naturistics cosmetics, and N.Y.C. New York Color cosmetics.
The transaction is expected to be completed in the fourth quarter of 2004, after which time Del Laboratories will become a wholly owned subsidiary of DLI Holding and will cease to be a publicly traded company.
Upon completion Del chairman and chief executive Dan Wassong will retire. Wassong, who owns about 30 per cent of the company, has agreed to vote in favour of the merger.
William McMenemy, currently executive vice president of marketing at Del, will become president and chief executive.
Church & Dwight expects the acquisition, which awaits shareholder and regulatory approval, to have no material effect on earnings this year or next.
