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Clorox Completes Previously Announced Divestiture of its Better Health VMS Business

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The Clorox Company (NYSE: CLX) has completed the divestiture of its Better Health Vitamins, Minerals and Supplements (VMS) business to an affiliate of Piping Rock Health Products, The transaction includes the Natural Vitality, NeoCell, Rainbow Light, and RenewLife brands, along with associated trademarks, licenses, and manufacturing facilities in Sunrise, Florida.

This strategic move aligns with Clorox's commitment to evolve its portfolio, aiming to reduce volatility, accelerate sales growth, and improve margins. The company's goal is to drive more consistent and profitable growth over time through this portfolio optimization.

La Clorox Company (NYSE: CLX) ha completato la dismissione della sua attività di Vitamine, Minerali e Supplementi (VMS) a un'affiliata di Piping Rock Health Products. La transazione include i marchi Natural Vitality, NeoCell, Rainbow Light e RenewLife, insieme ai relativi marchi, licenze e impianti di produzione a Sunrise, Florida.

Questa mossa strategica si allinea con l'impegno di Clorox di evolvere il proprio portafoglio, mirando a ridurre la volatilità, accelerare la crescita delle vendite e migliorare i margini. L'obiettivo dell'azienda è di perseguire una crescita più coerente e redditizia nel tempo attraverso questa ottimizzazione del portafoglio.

La Clorox Company (NYSE: CLX) ha completado la desinversión de su negocio de Vitaminas, Minerales y Suplementos (VMS) a una afiliada de Piping Rock Health Products. La transacción incluye las marcas Natural Vitality, NeoCell, Rainbow Light y RenewLife, junto con las marcas comerciales asociadas, licencias y instalaciones de fabricación en Sunrise, Florida.

Este movimiento estratégico se alinea con el compromiso de Clorox de evolucionar su portafolio, con el objetivo de reducir la volatilidad, acelerar el crecimiento de ventas y mejorar márgenes. La meta de la compañía es impulsar un crecimiento más consistente y rentable a lo largo del tiempo a través de esta optimización de portafolio.

클로락스 컴퍼니 (NYSE: CLX)는 Piping Rock Health Products의 계열사에게 자사 비타민, 미네랄 및 보충제 (VMS) 사업 매각을 완료했습니다. 이 거래에는 내추럴 바이탈리티, 네오셀, 레인보우 라이트 및 리뉴라이프 브랜드와 함께 관련 상표, 라이센스, 플로리다주 선라이즈의 제조 시설이 포함됩니다.

이 전략적 조치는 클로락스가 포트폴리오를 발전시키기 위한 노력의 일환으로, 변동성을 줄이고, 판매 성장을 가속化하며, 마진을 개선하는 것을 목표로 합니다. 회사의 목표는 이러한 포트폴리오 최적화를 통해 시간이 지남에 따라 보다 일관되고 수익성 있는 성장을 주도하는 것입니다.

La Clorox Company (NYSE: CLX) a achevé la cession de ses activités de vitamines, minéraux et suppléments (VMS) à une filiale de Piping Rock Health Products. La transaction inclut les marques Natural Vitality, NeoCell, Rainbow Light et RenewLife, ainsi que les marques commerciales associées, les licences et les installations de fabrication à Sunrise, Floride.

Ce mouvement stratégique s'inscrit dans l'engagement de Clorox à faire évoluer son portefeuille, visant à réduire la volatilité, accélérer la croissance des ventes et améliorer les marges. L'objectif de l'entreprise est de favoriser une croissance plus cohérente et rentable dans le temps grâce à cette optimisation de son portefeuille.

Die Clorox Company (NYSE: CLX) hat die Veräußerung ihres Geschäftsbereichs Vitamine, Mineralstoffe und Nahrungsergänzungsmittel (VMS) an ein Tochterunternehmen von Piping Rock Health Products abgeschlossen. Die Transaktion umfasst die Marken Natural Vitality, NeoCell, Rainbow Light und RenewLife sowie die zugehörigen Marken, Lizenzen und Produktionsstätten in Sunrise, Florida.

Dieser strategische Schritt entspricht dem Engagement von Clorox, sein Portfolio weiterzuentwickeln, mit dem Ziel, Volatilität zu reduzieren, das Umsatzwachstum zu beschleunigen und die Margen zu verbessern. Das Unternehmen hat sich zum Ziel gesetzt, durch diese Portfolio-Optimierung im Laufe der Zeit ein konsistenteres und profitableres Wachstum zu erzielen.

Positive
  • Completion of divestiture aligns with strategic goals to reduce volatility
  • Potential for accelerated sales growth and improved margins
  • Streamlining of portfolio to focus on core businesses
Negative
  • Loss of revenue streams from divested VMS brands
  • Potential short-term impact on overall sales figures

The divestiture of Clorox's Better Health VMS business marks a strategic shift in the company's portfolio management. This move aligns with Clorox's stated goal of reducing volatility and improving margins, which could potentially lead to more stable financial performance in the long term.

While the financial terms weren't disclosed, this transaction will likely impact Clorox's revenue stream. The VMS market has been volatile and by divesting these brands, Clorox may be trading short-term revenue for long-term stability. Investors should watch for changes in Clorox's upcoming financial reports, particularly in the health and wellness segment, to gauge the impact of this divestiture on overall performance.

This move also signals Clorox's focus on core competencies, potentially allowing for more targeted investments in areas where the company has a stronger market position. The reduced complexity in operations could lead to improved efficiency and potentially higher profit margins in the future.

Clorox's divestiture of its VMS business reflects broader industry trends in the consumer goods sector. Many large companies are streamlining their portfolios to focus on core strengths and adapt to changing consumer preferences. This move may position Clorox to better compete in its primary markets.

The VMS market is highly competitive and fragmented, with numerous players vying for market share. By exiting this space, Clorox is likely reducing its exposure to a volatile segment while potentially freeing up resources for innovation in its core cleaning and household products.

Investors should consider how this divestiture might affect Clorox's market positioning and growth strategy. While it may lead to more consistent performance, it could also limit potential upside in the fast-growing wellness sector. The key will be how effectively Clorox reinvests the proceeds from this sale into areas that can drive sustainable growth.

OAKLAND, Calif., Sept. 10, 2024 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today announced the completion of the previously disclosed divestiture of its Better Health Vitamins, Minerals and Supplements (VMS) business in its entirety to an affiliate of Piping Rock Health Products, LLC. The divested business includes the Natural Vitality, NeoCell, Rainbow Light and RenewLife brands, relevant trademarks and licenses, and associated manufacturing and distribution facilities in Sunrise, Florida.

This transaction reflects Clorox's commitment to continue evolving its portfolio to reduce volatility and accelerate sales growth, as well as structurally improve its margin, in service of driving more consistent and profitable growth over time.

About The Clorox Company

The Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Its trusted brands, which include Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr® and Pine-Sol® can be found in about nine of 10 U.S. homes and internationally with brands such as Clorinda®, Chux® and Poett®. Headquartered in Oakland, California, since 1913, Clorox was one of the first U.S. companies to integrate ESG into its business reporting. In 2024, the company was ranked No. 1 on Barron's 100 Most Sustainable Companies list for the second consecutive year. Visit thecloroxcompany.com to learn more.

CLX-F

(PRNewsfoto/The Clorox Company)

 

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SOURCE The Clorox Company

FAQ

What brands did Clorox (CLX) divest in its Better Health VMS business sale?

Clorox divested the Natural Vitality, NeoCell, Rainbow Light, and RenewLife brands as part of its Better Health Vitamins, Minerals and Supplements (VMS) business sale.

Who acquired Clorox's (CLX) Better Health VMS business?

An affiliate of Piping Rock Health Products, acquired Clorox's Better Health Vitamins, Minerals and Supplements (VMS) business.

What are the strategic reasons behind Clorox's (CLX) divestiture of its VMS business?

Clorox's divestiture aims to reduce portfolio volatility, accelerate sales growth, improve margins, and drive more consistent and profitable growth over time.

What assets were included in Clorox's (CLX) VMS business divestiture?

The divestiture included relevant brands, trademarks, licenses, and associated manufacturing and distribution facilities in Sunrise, Florida.

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