Clorox to Buy 50% of Leading Brazilian Household Products Business
Oakland, Calif. -- The Clorox Co. has entered into an agreement to acquire 50% of the leading cleaning utensils and household cleaners business in Brazil.
Clorox will pay, under terms of the agreement, $200 million to acquire a 50% stake in Detergentes Bombril S.A., a new venture to be formed by Bombril S.A. and Clorox, as well as other rights.
Bombril will transfer assets to the joint venture such as trademarks, three production facilities and approximately 1,900 employees.
Bombril holds a No. 1 market position in cleaning utensils in Brazil, with its Bom Bril brand of steel wool. With Pinho Bril and other brands, Bombril also holds the No. 1 position in disinfectant cleaners. Additionally, the company's portfolio includes other household cleaners, fabric softeners and dishwashing liquid, and Bombril has one of the most extensive distribution networks in Brazil.
The transaction is subject to different closing conditions, such as confirmatory due diligence and execution of a shareholders' agreement that, among other things, will provide for Clorox's role in the management of the joint venture. The companies are slated to finalize the transaction in May 2001.