According to a Sunday NY Post article that references a source with “direct knowledge” of the situation”, The Clorox Co. (CLX) has reportedly rejected a sale or a merger offer from a competing packaged-goods company. The paper’s source claims that the American multinational manufacturer of consumer products received a bid valuing it at a roughly 20% premium to its trading pps. Clorox’s shares, which are currently priced at 21.04x this year’s forecasted earnings compared to the industry’s 20.73x earnings multiple, closed at $90.57 on Friday, giving the Oakland, California-based company a market cap of roughly $11.7B.
The Post said its source did not confirm the suitor, but potential names include Church & Dwight Co., Inc. (CHD), Procter & Gamble (PG), Jarden Corp (JAH) and Unilever (UN). Wallstreetpit has reached out to Clorox for comment on the report and will update this post with any additional information we learn.
On valuation-measures, shares of Clorox have a PEG and forward P/E ratio of 2.93 and 19.23, respectively. Price/sales for the same period is 2.07, while EPS is $4.30. Currently, CLX has a median Wall Street price target of $87.00 with a high target of $101.00.
In the past 52 weeks, ticker has traded between a low of $80.20 and a high of $96.76 and is now at $90.57. Shares of Clorox are up 9.65% year-over-year ; down 2.36% year-to-date.
The chart below shows where the equity has traded over the last year, with the 50-day and 200-day moving averages included.
Update: A Clorox spokesperson declined comment on the rumor.