Burt’s Bees Sells Out

Clorox, the chemical company best known for making chlorine-based bleach and Kingsford Charcoal, purchased the seemingly indie-personal-care brand, Burt’s Bees for $925 mil. The move wasn’t surprising to most industry insiders, as Burt’s had been making larger distribution deals in the past several months:

Burt’s, which has grown its business largely through health, natural-food and other specialty stores, entered Target earlier this year, and it already had plans in place to begin a distribution test with Wal-Mart Stores by year-end, according to a person familiar with the matter.
Clorox and Burt’s Bees executives declined to comment on Wal-Mart distribution prospects but said the distribution power of Clorox, which already gets 26% of its sales from Wal-Mart, was a key factor in justifying the deal.

Burt’s CEO John Replogle, promises that they’re

“Going to continue to run the business with the same team and the same principles with the same integrity of the natural products and sustainability that we always have…So really there should not be any perceived change for the consumer. And if you get to know Clorox and their people, mission and values, they’re tightly aligned with our own.”

Clorox: Bleach, Charcoal and…Burt’s Bees – Advertising Age