Bleach maker Clorox said that it would sell its operations in Argentina, Uruguay and Paraguay to private equity fund Apex Capital, as it looks to tighten its portfolio to be more profitable, and take a one-time charge of about $233 million (€214.2 million) related to the sale.
The company, whose move comes at a time when higher prices are hurting demand for consumer goods, said it will record the after-tax charge in the third quarter of fiscal 2024, which would shave off about $1.87 of its earnings per share in the quarter.
The financial terms of the deal were not disclosed.
Clorox Argentina was about 2% of the company's fiscal 2024 net sales forecast in February, and could reduce its annual net sales growth target by about half a point, and adjusted earnings per share by up to 2 cents, the company said.
The Pine-Sol maker's shares were down marginally in early trade.
Cybersecurity Incident
In February, Clorox had lifted its annual targets as it posted a quick recovery from a cybersecurity incident that took its products off the shelves for a short period in September 2023.
With its products off the shelves for a short period due to the attack, CFO Kevin Jacobsen said that private label brands made some inroads into the company's market share. However, the company topped market expectations for first-quarter revenue, and posted a surprise profit against market expectations of a loss.
In December, consumer goods giant Procter & Gamble said it would restructure its Argentina and Nigeria operations as it deals with difficult macroeconomic conditions in the regions, along with a strong dollar.
