Church & Dwight to use debt in Water Pik buy and pay it down quickly

By Devika Patel

Knoxville, Tenn., July 17 – Church & Dwight Co. Inc. expects to finance its planned $1 billion cash acquisition of Water Pik, Inc. with debt.

“The acquisition will be debt financed,” senior vice president and chief financial officer Richard A. Dierker said on the company’s conference call announcing the acquisition on Monday.

“Our post-transaction debt to EBITDA leverage would be around 2.5x, but we do expect to be a bit below 2x levered by mid-2019.

“We’ve said many times in terms of our capital allocation strategy that when we do a large deal, debt paydown becomes a priority,” he said.

The transaction is expected to close in the third quarter.

The maker of personal care, household and specialty products is based in Princeton, N.J.

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