Private equity firm MidOcean Partners is to sell Water Pik, a producer of branded oral health products and replacement showerheads, to Church & Dwight Co, a specialist in personal care, household and specialty products under the Arm & Hammer brand name and other well-known trademarks, for approximately USD1billion in cash.
The transaction is expected to close in the third quarter of 2017, subject to customary closing conditions and regulatory approvals.
Water Pik is the No1 water flosser brand and the No1 replacement shower head brand in the US. Water Pik’s branded oral health business offers a complete line of products, including its market leading line of water flossers, a water flosser and powered toothbrush combination product line and a full line of professional dental products. Water Pik’s replacement showerhead business leverages its technology across a broad array of platforms, including EcoFlow (water conservation) and EasySelect (adjustable in-handle water pressure and spray selection). Water Pik’s products are marketed in the US and Canada and exported to over 80 countries.
MidOcean has extensive experience in the branded consumer products space and was attracted to Water Pik’s leading position in a fundamentally attractive market with a category-defining, dominant brand when it, along with Vulcan Capital and Northwestern Mutual, acquired Water Pik in July 2013. During MidOcean’s ownership, WaterPik generated significant organic growth in both revenue and EBITDA. The Company greatly increased Water Flosser penetration in North America through new product development and innovations; dental professional marketing efforts, including the expansion of the Lunch-and-Learn program; the launch of a Water Flosser DRTV campaign; and, international expansion plans with a number of key customers.
Jonathan Marlow, Managing Director at MidOcean focused on the consumer space, says: “Water Pik’s accomplishments during our partnership are representative of the value creation we look to drive and actively support in our portfolio companies. Building upon Water Pik’s leading market position, MidOcean was able to apply its proven methodologies and sector expertise to bolster a key player in a growing and increasingly important oral health and shower head businesses.”
Ted Virtue, CEO of MidOcean Partners, says: “Water Pik has been a successful investment for MidOcean and demonstrates the expertise we are able to provide branded consumer product companies. We have enjoyed the opportunity to partner with CEO Richard Bisson and the Water Pik team, and believe the Company is well-positioned for continued growth under Church & Dwight.”
Richard Bisson, CEO of Water Pik, says: “MidOcean was a valuable partner, and I am very proud of what we accomplished together during our partnership. With extensive experience in the branded consumer space, MidOcean provided us with sound strategic guidance and support that allowed us to scale the Company, generate outstanding growth, introduce new and innovative products, and further position Water Pik as a leader in the branded oral health and replacement showerhead business.”
Harris Williams and Wells Fargo acted as financial advisors, and Kirkland & Ellis LLP acted as legal advisor to MidOcean Partners.
