OAKLAND, Calif. (AP) — Looking to capitalize on growing consumer preference for ''natural'' products, Clorox Co. said Wednesday it will buy privately held personal care products company Burt's Bees for $925 million in cash.
Burt's Bees beauty products emphasize botanicals instead of chemicals. They must contain 95 percent natural ingredients, the company has said.
Clorox, the maker of Clorox bleach, Brita water filtration products and Kingsford charcoal said it will fund the purchase with cash and short-term borrowings.
The company said it expects the transaction to lower its fiscal 2008 earnings by about 10 cents to 15 cents per share and that the deal will begin to add to earnings in fiscal 2009.
The purchase price includes a payment of $25 million for anticipated tax benefits, the company said.
Clorox said the acquisition fits with its plans to look for growth in areas aligned with consumer ''megatrends'' in health and wellness, sustainability, convenience and a more multicultural marketplace.
The deal is expected to close by the end of the calendar year, the company said.
