Church & Dwight Acquires Majority Interest in Brazilian Affiliate.PRINCETON, NJ--(BUSINESS WIRE)--June 16, 1999-- Church & Dwight Co., Inc. (NYSE NYSE See: New York Stock Exchange :CHD CHD coronary heart disease. ChD abbr. Latin Chirurgiae Doctor (Doctor of Surgery) CHD, n.pr See disease, coronary heart. CHD canine hip dysplasia. ) today announced that it acquired an additional 35% interest in its Brazilian affiliate, Quimica Geral do Nordeste ("QGN"), raising its total interest to 75%. The purchase price was $9.1 million, which may be adjusted up or down depending on the Company's operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. over the next two years. QGN's experienced management team will continue to retain an ownership interest. QGN is South America's largest producer of sodium bicarbonate sodium bicarbonate or sodium hydrogen carbonate, chemical compound, NaHCO3, a white crystalline or granular powder, commonly known as bicarbonate of soda or baking soda. It is soluble in water and very slightly soluble in alcohol. which is used in food, health care, animal nutrition and cleaning applications; barium carbonate Barium carbonate (BaCO3), also known as witherite, is a chemical compound used in rat poison, bricks and cement. Witherite crystallizes in the orthorhombic system. , comparable to potassium carbonate potassium carbonate, chemical compound, K2CO3, white, crystalline, deliquescent substance that forms a strongly alkaline water solution. It is available commercially as a white, granular powder commonly called potash, or pearl ash. in Church & Dwight's U.S. operations, which is used in the production of video glass; and other related specialty chemicals. Church & Dwight acquired its original 40% interest in 1997, and has been actively involved in providing technology and marketing support. QGN reported 1998 sales of $26.2 million, and is profitable. Robert A. Davies, III, Church & Dwight's President and Chief Executive Officer, commented, "This investment is strategic and strengthens our position as the world's leading producer of sodium bicarbonate. We believe the growth prospects for the Company's line of specialty chemicals are excellent, and the investment should lead to other opportunities in the Brazilian market." Mr. Davies continued, "We believe the acquisition will make a slight contribution to earnings in 1999." Church & Dwight Co., Inc. is the manufacturer of ARM & HAMMER(R) consumer and specialty products. The matters discussed in this press release include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties which could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include economic and political stability in the areas in which QGN operates. Other risks and uncertainties can be found in the Company's SEC filings. |
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