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Clorox buys natural vitamin maker Nutranext for $700 million

OAKLAND — Clorox has agreed to buy natural vitamins maker Nutranext in a deal that could broaden Clorox’s offerings, the maker of bleach, trash bags, salad dressing and other consumer products said Monday.
Florida-based Nutranext makes natural multivitamins, specialty minerals used as health aids, and supplements for hair, skin and nails.
“Adding Nutranext to our portfolio is consistent with our strategy to accelerate growth through acquisitions of leading brands in fast-growing categories with attractive gross margins and a focus on health and wellness,”  Benno Dorer, Clorox chief executive officer, said in a prepared release.
Oakland-based Clorox, which has a large operation in Pleasanton, said the purchase of Nutranext will greatly broaden Clorox’s dietary supplements business. In 2016, Clorox bought the RenewLife brand, which is in the digestive health business.
During 2017, Nutranext produced roughly $200 million in sales, Clorox and Nutranext said.
The deal is subject to regulatory approvals and is due to be complete during the April-through-June quarter of this year. Clorox said it would use a combination of debt and available cash to finance the purchase.
Clorox believes the deal will dilute earnings by 7 to 11 cents a share during the fourth quarter of its current fiscal year due to end June 30 and by 8 to 12 cents a share during the fiscal 2019 year. During fiscal 2020, the transaction should begin to add to Clorox’s profits.
“Nutranext is joining the Clorox family, a company distinguished by its innovation and like-minded mission of developing products that enhance the lives of consumers every day,” said Jose Minski, founder and chief executive officer of Nutranext.

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