🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Clorox sells Argentina operations to Apex Capital

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

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.