Clorox Announces Sale of Auto Care Business

Included in the transaction are substantially all of Clorox's global auto care businesses, the majority of which are in the U.S., Australia, Canada and Europe, including worldwide rights to distribute the Armor All and STP brands. As part of the transaction, the buyer will acquire two auto care manufacturing facilities, one in the U.S. and one in the U.K.

OAKLAND, Calif. — The Clorox Co. officially announced yesterday that it has entered into a definitive agreement to sell its global auto care businesses to an affiliate of Avista Capital Partners in an all-cash transaction.

The business is being sold for gross proceeds of approximately $780 million subject to closing adjustments related to working capital. The transaction, which is subject to regulatory and other customary approvals and closing conditions, is expected to close by the end of this calendar year.

Included in the transaction are substantially all of Clorox’s global auto care businesses, the majority of which are in the U.S., Australia, Canada and Europe, including worldwide rights to distribute the Armor All and STP brands. As part of the transaction, the buyer will acquire two auto care manufacturing facilities, one in the U.S. and one in the U.K. Employees at these facilities, the auto business management team and other employees affiliated with the global auto care business will transfer to the buyer. Clorox has agreed to provide transition services to the buyer for a period of up to 18 months.

Clorox plans to use net proceeds from the sale to repurchase shares of Clorox common stock over the remainder of its current fiscal year.

"We believe this transaction is in the best interest of shareholders as we seek to reshape our portfolio," said Clorox Chairman and CEO Don Knauss. "As we have acknowledged in the past, our auto care business does not align as strongly with our strategy to focus on key consumer megatrends such as health and wellness and sustainability. The auto care brands hold leading market share positions, and we’re pleased to have identified a new growth-oriented owner who will continue to work with the talented auto care team to build on this strong foundation."

In its last fiscal year, which ended June 30, the auto care businesses had global sales of about $300 million and generated earnings before interest and taxes of about $90 million. These results include a full allocation of corporate overhead to the auto care businesses.