Clorox sells STP, Armor All for $780M

By Reuters
Posted Sep. 21, 2010 at 8:09 a.m.

Clorox Co., maker of household cleaning products and other consumer goods, said it struck a deal to sell its auto-care brands to private equity firm Avista Capital Partners for $780 million in cash.

Clorox executives said in May that they were considering selling STP and Armor All, brands analysts said did not mesh well with a portfolio that includes Brita water filtration systems, Glad storage bags and Formula 409 surface cleaners.

Clorox said in a statement Tuesday that the auto care businesses had global sales of about $300 million in the last fiscal year. Analysts said they were more discretionary during the recession than the company’s other brands.

In the transaction, Avista would also acquire two auto-care manufacturing facilities, according to the statement. The deal is expected to close by the end of the calendar year.

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