Clorox To Acquire First Brands In $2 Billion Deal

The Clorox Co. has signed a definitive agreement to acquire First Brands for approximately $2 billion. First Brands manufactures and markets plastic wraps and bags, auto care products, cat litter and home fireplace products with annual sales of $1.2 billion.

G. Craig Sullivan, chairman and CEO of Clorox, described the acquisition of First Brands as "an excellent strategic fit," strengthening Clorox's existing portfolio in litter and auto care products with the growing bags and wraps category. He also explained that the acquisition of First Brands will increase Clorox's international diversification. First Brands currently derives approximately 23% of its annual sales from its operations in Canada, Australia, New Zealand and South Africa.

Under terms of the agreement, First Brands shareholders will receive Clorox shares equal to a value of $39 for each First Brands share outstanding. Clorox will also assume approximately $440 million of First Brands debt.

For more information: Daniel Danzig, Clorox, telephone: 510-271-7291 or Paul Stansel, First Brands, telephone: 203-731-2330.