NEW YORK (Reuters) - Clorox Co Chief Executive Don Knauss plans to be
fairly aggressive in buying assets to expand his company's healthcare
offerings as it looks to triple the size of that business over the next
five years.
The 99-year-old company is best-known for its namesake
bleach, but its healthcare business - encompassing products like
disinfecting spray, germicidal wipes and hand sanitizer - has been a
small growth engine in recent years.
The business has grown to around $100 million in annual
revenue from around $2 million over the past five years, Knauss told
Reuters in an interview. He hopes to expand it to a $300 million
business within five years, with about half that growth coming from
acquisitions.
"You can certainly expect more activity," Knauss said,
noting that there are dozens of family-owned healthcare companies that
focus on disinfection products, or products that prevent the spread of
infection - offerings the company is looking to expand.
"Most of these companies that we've looked at are in the $10-to-$50 million range" of annual revenue, Knauss said.
The company spent about $80 million to $90 million to
buy two healthcare companies - Aplicare Inc and HealthLink - earlier in
2012.
Internationally, Knauss said Clorox will also look for
bolt-on acquisitions for its home care and laundry businesses in
countries where it already does business, especially in Latin America.
He said the company was interested in Procter & Gamble Co's bleach business in Central America, for instance.
"We'll continue to knock on their door," he said,
noting that the unit probably brings in less than $50 million in revenue
annually.
Clorox is trying to reshape its portfolio to align more
with the consumer trends of health and wellness, sustainability,
multiculturalism and affordability. It has sold its auto care business
and acquired various products sold to the healthcare industry as well as
Burt's Bees natural personal care products and Soy Vay Enterprises,
which makes Asian marinades and dressings.
Still, Knauss said the company was not interested in making any drastic changes through acquisition.
"I think people typically overpay when they start talking about transformational acquisitions," Knauss said.
Clorox shares dipped 4 cents to close at $68.80 on Thursday.
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