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Clorox sells Argentina operations to Apex Capital

EditorNatashya Angelica
Published 03/21/2024, 11:22 PM
© Reuters.

OAKLAND - The Clorox Company (NYSE: NYSE:CLX), a global manufacturer of consumer and professional products, announced today the sale of its subsidiaries in Argentina, Uruguay, and Paraguay to Apex Capital, a private equity fund linked with Grupo Mariposa, and an investment group led by Diego Barral, a former executive at Clorox.

The deal includes two production plants and rights to certain Clorox brands in the three countries, but excludes Clorox's Latin American research and development and corporate hubs.

The move is part of Clorox's IGNITE strategy to concentrate on its core business areas for sustained profitable growth. Chair and CEO Linda Rendle stated, "This transaction supports our IGNITE strategy and our commitment to evolve our portfolio to increase our focus on our core business to drive more consistent, profitable growth." She also expressed confidence in the new owners' ability to continue the growth trajectory of the business, benefiting both consumers and employees.

Clorox Argentina's contribution to the company's net sales outlook for fiscal year 2024 is approximately 2%. The sale will result in a one-time, after-tax charge of about $233 million in the third quarter of fiscal year 2024, equating to an estimated $1.87 reduction to earnings per share.

The majority of this charge is due to the non-cash release of accumulated currency translation adjustments. The transaction is expected to decrease the company's fiscal year 2024 net sales growth by about half a percentage point and have a negligible effect on adjusted earnings per share.

Clorox, headquartered in Oakland, California, has a portfolio of trusted brands including Brita, Burt's Bees, and Glad. The company has been acknowledged for integrating Environmental, Social, and Governance (ESG) factors into its business reporting and was recently ranked No. 1 on Barron's 100 Most Sustainable Companies list for the second consecutive year.

The financial details of the transaction were not disclosed. This article is based on a press release statement from The Clorox Company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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