Clorox Lifts FY16 Outlook; Acquires Renew Life For $290 Mln In Cash

(RTTNews) - Clorox Co. (CLX) updated its financial outlook for fiscal year 2016, which includes the impact of the announced acquisition of digestive health company Renew Life.

Clorox raised its fiscal year 2016 earnings per share from continuing operations to be in the range of $4.85 to $4.95, which includes dilution of 3 to 5 cents related to one-time acquisition costs. This compared with the company's previous outlook of $4.75 to $4.90.

Analysts polled by Thomson Reuters expect the company to report earnings of $ 4.93 per share and revenues of $5.70 billion for fiscal year 2016. Analysts' estimates typically exclude special items.

The company's fiscal year 2016 sales outlook now anticipates sales growth in the range of 1 to 2 percent versus the company's previous sales outlook of flat to 1 percent sales growth, reflecting strong year-to-date sales results. Clorox Company (CLX) announced its acquisition of Renew Life, a leading brand in dietary health, with an emphasis on digestive health. Renew Life is the No. 1 brand of probiotics in the natural channel, with a steadily growing share in the food, drug, and mass channel.

Under the terms of the deal, Clorox acquired Renew Life Holdings Corporation from Swander Pace Capital and other shareholders for approximately $290 million in cash, subject to post-closing adjustments. In fiscal year 2017, which begins July 1, 2016, the business is anticipated to add sales of nearly 2 percentage points to Clorox's top line.

In calendar year 2015, Renew Life generated sales of about $115 million and had gross margins generally in line with The Clorox Company average.