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New Jersey business merger: Local company gets into vitamins

Church & Dwight, the Princeton, New Jersey based company, has announced that it is purchasing Avid Health, Inc. Church & Dwight's current product base includes products such as Arm & Hammer Baking Soda, Brillo pads, and Aim toothpaste. This business merger will expand that product base to vitamins.

Avid Health, Inc. is the maker of Vitafusion for adults and L'il Critters for children. These gummy vitamins provided Avid Health with $230 million in sales for the 12 months that ending in June. Even though Church & Dwight's income declined in the second quarter, they are confident that this purchase will be good for the company and is a viable part of their growth.

The company admits that purchasing Avid Health will decrease its income for 2012, but anticipates that the purchase will add to the company's income in 2013. The deal is expected to be finalized in the fourth quarter of this year. Church & Dwight anticipates that the company will begin to see savings in the area of $15 million in 2014 once Avid Health is fully integrated into the company.

Any New Jersey company planning a business merger needs to be willing to take some risks. Even though income may be down in the short term, the anticipation of long term gains may make it worth the risk. Only after all of the issues and potential issues are identified and satisfied can a company feel justified in taking risks. Seeking advice and assistance with those issues can help limit, or even eliminate any surprises in the future. Having a solid plan and the patience and confidence to execute it are vital for any successful business merger.

Source: Nj.com, "Princeton maker of Arm & Hammer, Brillo pad buys vitamin company for $650M," Aug. 20, 2012

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