A week and a half after The Clorox Co. announced its plans to buy Akron-based GOJO Industries for $2.2 billion, Clorox CEO Linda Rendle reiterated her admiration for the homegrown business and its management team.
With the acquisition, Rendle told investors in a conference call Tuesday, Clorox is taking a “decisive step” to expand its leadership in the health and hygiene category, adding that the maker of Purell is expected to drive future growth.
Clorox owns brands including Glad, Hidden Valley Ranch, Brita and Pine-Sol. While some of those businesses have felt the effects of inflation as shoppers seek more value, Rendle said she sees significant upside in expanding Purell sales to both businesses and retail customers.
“I feel like we’re adding another business with very strong tailwinds,” she said.
Rendle went on to praise GOJO’s “very strong management team” and their capabilities. She said she thinks the addition of the Akron company’s leaders — and their commitment to innovation — “positions us to create significant long-term value.”
How Akron’s GOJO Industries shaped modern hygiene
Jerry and Goldie Lippman founded GOJO in 1946. They developed GOJO Hand Cleaner to remove graphite and carbon black from rubber workers’ hands as an alternative to chemicals, including kerosene and benzene. The company also invented:
- The first portion-controlled dispenser in 1952
- Purell in 1988
- Touch-free dispensers in 2006
Rendle said she’s confident Clorox will integrate the company “seamlessly.”
“Of course we are integrating in a very disciplined way to make sure that we’re focused on the places where we can add value and not integrating in places where it does not add value,” she said. “So feel very good about that.”
GOJO’s future home remains unclear
In prepared remarks released with the company’s earnings, Rendle also said she intends to retain the capabilities that make GOJO’s model work and preserve its existing relationships and service levels.
In announcing the acquisition, Rendle said the company would stay in Northeast Ohio, but it’s not clear if it will remain in Akron. The deal is expected to close before the end of Clorox’s fiscal year this summer.
