PHOENIX -- Dial Corp. said Thursday it has agreed to buy Drackett Co.'s Renuzit air-freshener business from S.C. Johnson & Son Inc. for an undisclosed price.
'This acquisition is consistent with our long-term strategy to build our core consumer-products business,' said John W. Teets, chairman, president and chief executive officer.
'The Renuzit brand compliments Dial's existing portfolio of household products and immediately positions the company as a leader in the rapidly growing air freshener market.'
The deal must be approved by Dial's board of directors and the Federal Trade Commission.
Renuzit generated sales of $115 million last year in its Renuzit Adjustable, Aerosol, Fragrance Jar and RoomMate products. Dial said it plans to aggressively continue the rollout of the Renuzit Electric LongLast product.
'We believe that we are acquiring Renuzit at an attractive price which meets Dial's objectives and financial goals, and we expect the brand to make a positive contribution to earnings in 1993,' Teets said.
S.C. Johnson acquired Drackett Company from Bristol-Myers Squibb Co. on Dec. 31, and was required by the Federal Trade Commission to sell off Renuzit due to the strong market presence held by its own competing line of air freshener products.
Dial is a Phoenix-based conglomerate with 1992 sales of $3.3 billion. Among its products are the Dial soaps and deodorants, Breck hair care products, Purex and Trend laundry detergents, Brillo soap pads and Sno Bol toilet-bowl cleaners. It also spun off of its consumer finance unit last year.