Clorox (CLX.US) announced on Thursday that it will acquire GOJO Industries, the manufacturer of Purell hand sanitizer, for $2.25 billion in cash. This move is aimed at expanding its portfolio of brands in the consumer health and hygiene category. Sources familiar with the matter had indicated last September that GOJO was considering various options, including a full sale or the divestment of a minority stake. Sales of its star hand sanitizer brand, Purell, surged during the pandemic but have since stabilized. The Lippman-Kanfer family, which controls GOJO, attempted to sell the Akron, Ohio-based company in 2023. Even after negotiations with potential buyers such as Georgia-Pacific, they failed to receive a satisfactory offer. Ultimately, the family opted to secure a new $500 million loan from Silver Point Finance for debt refinancing and to support company operations. In a statement released on Thursday, Clorox indicated that the total transaction value of $2.25 billion includes a purchase price of $1.92 billion and an estimated $330 million in tax benefits. The company revealed that the owner of the Purell brand generates annual sales close to $800 million, with revenue maintaining a steady average annual growth rate of 5% over the past three years. Clorox plans to finance the acquisition primarily through debt and expects the transaction to be completed before the end of its 2026 fiscal year. The company stated that the deal is projected to generate annual cost synergies of at least $50 million. Clorox said that GOJO will continue to operate in Ohio and will be integrated into its business. This acquisition is the latest example of a consumer goods giant seeking to accelerate growth. Clorox's revenue fell 19% year-over-year last quarter, weighed down by weak performance in its health and wellness segment, as well as issues with a software upgrade affecting its enterprise-wide management systems for finance, production, and supply chain. The company stated at the time that shipping disruptions had impacted its market share. Clorox reaffirmed its annual performance forecast: full-year sales are expected to decline between 6% and 10%, while adjusted earnings per share are projected to be in the range of $5.95 to $6.30.