Church & Dwight to acquire FLAWLESS brand for $475M

Ewing-based Church & Dwight Co. Inc. announced it will acquire two brands of hair removal products from Wayne-based Ideavillage Products Corp. for $425 million.

The brands, FLAWLESS and FINISHING TOUCH, are marketed in the U.S. and more than 30 countries with 10 percent of sales coming from international markets.

FLAWLESS, it said, is a top women’s electric hair brand that focuses on the eyebrows and face.

“Women today are more focused on hair removal from their bodies. FLAWLESS provides simple, fast, dermatologist-approved solutions for face, brows and legs. FLAWLESS is a beloved brand by look-conscious consumers who want to be “selfie-ready” at any moment,” Church & Dwight CEO Matthew T. Farrell said. “FLAWLESS represents a powerful addition to our specialty haircare portfolio which includes BATISTE dry shampoo, VIVISCAL hair thinning supplements, and TOPPIK hair fibers.”

Under terms of the deal, Ideavillage will support the FLAWLESS business through a separate service agreement with Church & Dwight.

“Ideavillage is led by its founder and CEO, Andy Khubani, who has a passion for innovation and bringing new products to market. Having 20-years of demonstrated success in the development of multiple brands, his success with FLAWLESS stems specifically from years of work in women’s hair removal. Ideavillage is recognized for its highly skilled management team with fast decision making, rapid new product development and speed to market. We are excited to work with Andy and his team on this brand. We expect our global footprint and sales expertise to drive significant sales growth via new distribution and further expansion into international markets,” Farrell said.

The deal is expected to close in the second quarter of 2019.

Farrell said: “In 2019, we continue to expect approximately 7-9 percent adjusted EPS growth driven by approximately 7-9 percent EPS growth of our existing business, plus 1 percent accretion from the FLAWLESS acquisition inclusive of interest expense and intangible amortization, less 1 percent one-time transition costs. The earn-out liability is required to be adjusted quarterly during the earn-out period. This non-cash quarterly adjustment will be included in the company’s reported results, but is excluded from the company’s EPS outlook. The acquisition is expected to increase 2019 cash earnings by 4 percent.”

BofA Merrill Lynch will act as the financial adviser to Church & Dwight.