~ New WD-40 Company direct distribution market
to be headquartered in Curitiba, Brazil ~
WD-40 Company (NASDAQ:WDFC) announced today that a definitive
agreement has been entered into acquiring the company’s current
Brazilian marketing distributor and long-time business partner,
Theron Marketing Ltda.
WD-40 Company and Theron Marketing have worked closely together
to market and sell WD-40® Brand products in Brazil. Theron
Marketing was established in 1997 to focus solely on the
distribution and sales of WD-40 Company products in Brazil and does
not market or sell any other products. The transaction will bring
together Theron Marketing’s established workforce, customer base,
and distribution logistics with WD-40 Company’s best-in-class
marketing and brand building capabilities. As a result of their
highly integrated and close historical working relationship, the
companies expect a seamless integration.
Pursuant to the terms of the transaction, WD-40 Holding Company
Brasil Ltda., a wholly owned subsidiary of WD-40 Company, acquires
all outstanding shares of common stock of Theron Marketing Ltda., a
wholly owned subsidiary of M12 Participações Empresarias S.A., in
an all-cash offer. With this transaction, WD-40 Company will begin
direct distribution within the country of Brazil immediately. M12
Participações Empresarias S.A will continue to act as WD-40 Holding
Company Brasil’s logistics operator.
“This transaction directly supports our first Must-Win Battle
which is to lead geographic expansion of WD-40 Multi-Use Product,”
said Steve Brass, president and chief executive officer of WD-40
Company. “This acquisition will enable us to drive faster topline
growth, a smoother market transition, and a shortened learning
curve compared to building a direct market from the ground up.
“We are fortunate to negotiate a path forward that is in the
best interest of both organizations. M12 Participações Empresarias
S.A. have been an outstanding partner to us, and I want to thank
them for their ongoing support over the years. I also want to
extend a special welcome to all the Theron Marketing employees who
have done a marvelous job building the WD-40 Brand in Brazil over
the last 27 years. We are thrilled to officially welcome you into
our WD-40 Company family," concluded Brass.
“We view today’s announcement as the integration of two
companies that have enjoyed a tremendously symbiotic relationship
for nearly three decades,” said Milton Saling, Chairman of the
Board of M12 Participações Empresarias S.A., parent company of
Theron Marketing Ltda. “We are pleased that the execution of this
transaction means our partnership with WD-40 Holding Company Brasil
as a logistics provider can continue.”
The anticipated impact of this acquisition was included in WD-40
Company’s outlook for fiscal year 2024. The Company will provide
additional details when it reports fiscal second quarter earnings
which is tentatively scheduled for April 9, 2024.
About WD-40 Company
WD-40 Company is a global marketing organization dedicated to
creating positive lasting memories by developing and selling
products that solve problems in workshops, factories, and homes
around the world. The Company owns a wide range of well-known
brands that include maintenance products and homecare and cleaning
products: WD-40® Multi-Use Product, WD-40 Specialist®, 3-IN-ONE®,
GT85®, 2000 Flushes®, no vac®, 1001®, Spot Shot®, Lava®, Solvol®,
X-14®, and Carpet Fresh®.
Headquartered in San Diego, California, USA, WD-40 Company
recorded net sales of $537.3 million in fiscal year 2023 and its
products are currently available in more than 176 countries and
territories worldwide. WD-40 Company is traded on the NASDAQ Global
Select Market under the ticker symbol “WDFC.” For additional
information about WD-40 Company please visit
http://www.wd40company.com.
Forward-Looking Statements
Except for the historical information contained herein, this
press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements reflect the Company’s current expectations with
respect to currently available operating, financial and economic
information. These forward-looking statements are subject to
certain risks, uncertainties and assumptions that could cause
actual results to differ materially from those anticipated in or
implied by the forward-looking statements. These forward-looking
statements are generally identified with words such as “believe,”
“expect,” “intend,” “plan,” “project,” “could,” “may,” “aim,”
“anticipate,” “target,” “estimate” and similar expressions.
Our forward-looking statements include, but are not limited to,
discussions about future financial and operating results,
including: expected benefits from the transaction; acquired
business not performing as expected; assuming unexpected risks,
liabilities and obligations of the acquired business; disruption to
the parties’ business as a result of the announcement and
transaction; integration of acquired business and operations into
the company; growth expectations for maintenance products; expected
levels of promotional and advertising spending; anticipated input
costs for manufacturing and the costs associated with distribution
of our products; plans for and success of product innovation; the
impact of new product introductions on the growth of sales;
anticipated results from product line extension sales; expected tax
rates and the impact of tax legislation and regulatory action;
changes in the political conditions or relations between the United
States and other nations; the impacts from inflationary trends and
supply chain constraints; changes in interest rates; and forecasted
foreign currency exchange rates and commodity prices.
The Company’s expectations, beliefs and forecasts are expressed
in good faith and are believed by the Company to have a reasonable
basis, but there can be no assurance that the Company’s
expectations, beliefs or forecasts will be achieved or
accomplished. All forward-looking statements reflect the Company’s
expectations as of the date hereof. We undertake no obligation to
revise or update any forward-looking statements.
Actual events or results may differ materially from those
projected in forward-looking statements due to various factors,
including, but not limited to, those identified in Part I—Item 1A,
“Risk Factors,” in the Company’s Annual Report on Form 10-K for the
fiscal year ended August 31, 2023 which the Company filed with the
SEC on October 23, 2023, and in the Company’s Quarterly Report on
Form 10-Q for the period ended November 30, 2023, which the Company
filed with the SEC on January 9, 2024.
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version on businesswire.com: https://www.businesswire.com/news/home/20240303114291/en/
Media and Investor Contact: Wendy Kelley Vice President,
Stakeholder and Investor Engagement investorrelations@wd40.com
+1-619-275-9304
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