Company: CHD
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000950170-25-019801
Chunk: 120

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1B
Chunk 120
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ARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)(In millions, except share and per share data) 

6.Acquisitions  On June 3, 2024, the Company acquired substantially all of the issued and outstanding shares of capital stock of Graphico, Inc. ("Graphico"), a Japan-based distributor focused on consumer goods primarily in the Japanese market (the “Graphico Acquisition”).  The Company paid $19.9, net of cash acquired, at closing.  The Company acquired the remaining minority shares for approximately $2.0 in July 2024. Graphico’s annual net sales for the year ended December 31, 2023 were approximately $38.0. The Graphico Acquisition was financed with cash on hand, is expected to contribute to greater expansion of our business in the Asia-Pacific (APAC) region, and is managed in the Consumer International segment. The preliminary fair values of the net assets at acquisition are set forth as follows:    

        Accounts receivable
        $
        3.5

        Inventory
         
        11.3

        Other current assets
         
        1.5

        Other long-term assets
         
        5.8

        Customer relationship intangible asset
         
        8.4

        Goodwill
         
        2.8

        Accounts payable, accrued and other liabilities
         
        (6.9
        )

        Long-term debt
         
        (4.4
        )

        Deferred income taxes
         
        (2.1
        )

        Cash purchase price (net of cash acquired)
        $
        19.9

      The customer relationship intangible asset was valued using a discounted cash flow model and has a useful life of 15 years. The goodwill is a result of expected synergies from combined operations of the acquired business and the Company. Pro forma results are not presented because the impact of the acquisition is not material to the Company’s consolidated financial results. The goodwill and other intangible assets associated with the Graphico Acquisition are not deductible for U.S. tax purposes. On October 13, 2022, the Company acquired all of the issued and outstanding shares of capital stock of Hero Cosmetics, Inc. ("Hero"), the developer of the HERO® brand which includes the MIGHTY PATCH® acne treatment products (the “Hero Acquisition”).   The Company paid $546.8, net of