WD-40 Expands Brazil Presence with Acquisition of Theron Marketing By Investing.com

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San Diego – WD-40 Company (NASDAQ:) announced the acquisition of Theron Marketing Ltda., an exclusive marketing distributor in Brazil. The final agreement disclosed today marks the WD-40 Company’s move to establish a direct distribution channel within the Brazilian market.

The transaction involves the acquisition of all outstanding shares of Theron Marketing Ltda. by WD-40 Holding Company Brasil Ltda., a wholly-owned subsidiary of WD-40 Company. Theron Marketing Ltda. has been the exclusive distributor in Brazil for the WD-40 Company since its founding in 1997. Theron Marketing is a subsidiary of M12 Participações Empresarias SA and will continue to support WD-40 Holding Company Brasil as a logistics operator following the acquisition.

WD-40 Company expects this strategic move to lead to faster sales growth and a smoother market transition in Brazil. The acquisition is expected to leverage Theron Marketing’s existing infrastructure, customer relationships and distribution network, combined with the marketing expertise of The WD-40 Company.

Steve Brass, President and CEO of WD-40 Company, expressed confidence in a smooth integration resulting from the historic partnership between the two companies. He also welcomed the employees of Theron Marketing to the WD-40 Company family and acknowledged the role of M12 Participações Empresarias SA in facilitating the transition.

Milton Saling, Chairman of the Board of M12 Participações Empresarias SA, echoed the sentiment of the symbiotic relationship and expressed satisfaction with the ongoing logistics partnership with WD-40 Holding Company Brasil.

Financial terms of the all-cash deal were not disclosed in the press release. However, the impact of this acquisition is included in WD-40 Company’s fiscal 2024 outlook. Additional details are expected to be provided in the company’s fiscal second quarter earnings report, tentatively scheduled for April 9, 2024.

The San Diego-based company is known for its wide range of maintenance and home care cleaning products and has a presence in more than 176 countries and territories. This acquisition is consistent with the company’s goal to grow its versatile product line, especially in emerging markets.

The information in this article is based on a press release from the WD-40 Company.

InvestingPro Insights

As WD-40 Company (NASDAQ:WDFC) takes significant steps to expand its direct distribution in the Brazilian market, the company’s financial strength and stock performance are of particular interest to investors. According to the latest data from InvestingPro, WD-40 Company boasts a strong market capitalization of $3.62 billion and a significant presence in the maintenance and home care products space.

The company’s stock is trading at a high earnings multiple, with a price-to-earnings (P/E) ratio of 52.22. This may indicate investor confidence in the company’s future prospects despite its high valuation relative to near-term earnings growth. Additionally, WD-40 Company has demonstrated a strong commitment to shareholders, raising its dividend for eight consecutive years and maintaining dividend payments for an impressive 32 consecutive years.

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