OAKLAND, CALIF. (July 15, 4:30 p.m. ET) — Investor Carl Icahn has offered to buy Clorox Co., the bleach maker and majority owner of plastics products maker Glad Products Co., for $10.2 billion.
Icahn, who already owns 9.4 percent of Oakland-based Clorox, offered to pay $76.50 a share, a 12 percent premium over the July 14 closing price.
Financial analysts speculated that Icahn's offer was intended to encourage other potential buyers to make bids for Clorox, including competitors such as Procter & Gamble Co., Kimberly-Clark Corp., Henkel AG & Co. KGaA and Reckitt Benckiser plc.
“Clorox represents a scarce asset in an industry landscape where we fail to see any comparable alternatives,” Icahn wrote in a letter Clorox.
Clorox posted $5.534 billion in 2010 sales, with 30 percent of the total generated from household products, including the Glad Products business.
Glad's plastics operations include trash bags, cling wrap and food storage containers. The company ranked No. 9 in Plastics News' most recent survey of North American film & sheet manufacturers, with estimated relevant sales of $720 million.
Glad was originally part of Union Carbide Corp., but it was spun off to Danbury, Conn.-based First Brands Corp. in 1985. Clorox bought First Brands in 1998.
Since 2002, P&G has owned a minority stake in Glad. The companies have worked together to develop new products including ForceFlex trash bags, and Odor Shield bags with odor-neutralization properties.