Clorox to buy Midland's Caltech Industries
February 4, 2010
By Tony Lascari
tlascari@mdn.net  |
| NEIL BLAKE | photo@mdn.net
Caltech laboratory technician Laura Slingerland tests the percent of
bleach in a Caltech bleach product in the research and development labs
at 4520 E. Ashman Road Wednesday afternoon. Caltech was recently bought
by Clorox, but they are retaining all of Caltech's employees. |
The Clorox Co. is expected to announce today that is has purchased Midland-based
Caltech Industries, Inc., maker of hospital and commercial disinfectants.
California-based Clorox is a leader in bleach and cleaning products with about 8,300 employees worldwide. It manufactures products in more than 24 countries and markets them in more than 100 countries.
Caltech's core product, DISPATCH Hospital Cleaner Disinfectant with Bleach, is used in more than 1,000 hospitals across the country.
Cathy Anders, general manager and managing director of Caltech, said the business was sold to Clorox. Financial details of the deal were not being released.
Anders' father, Midlander Cal Goeders, founded Caltech in 1980 and it grew to employ 36 people today. There are 25 employees in Midland and the others are sales positions based across the country. Anders said the sale to Clorox is good news for employees.
"Clorox is interested in the expertise of the staff as well as the products," she said. "They're going to be retaining all of our Caltech employees."
In 2007, Caltech was on Michigan's 50 Companies to Watch list. It recently expanded its laboratory and office space inside the MidMichigan Innovation Center, 4520 E. Ashman St. Production of its products is contracted to manufacturers across the U.S.
Anders said they previously considered selling the company when Goeders wanted to retire, but she wanted the challenge of running it. She said it went well, but the company had achieved its potential as an independent company.
"I'm excited about teaming up with Clorox to fight health care-associated infections together," she said.
Anders will become a managing director with Clorox, staying on as a staff adviser for the health care market. She said eventually, Caltech's products are expected to take on the Clorox name.
"Clorox has a strong brand name and global reach," she said. "I think the combination of the two will be really powerful."
With about 4,400 hospitals in the U.S. not using its product, there is still growth potential, Anders said. Caltech's sales had been growing and hospitals have become more focused on infection prevention.
"The future is really attractive," she said, noting the company will focus customer needs and future innovation.
Clorox had fiscal year 2009 revenues of $5.5 billion. Besides its namesake bleach and cleaning products, the company markets Green Works natural cleaners, Armor All and STP auto-care products, Fresh Step and Scoop Away cat litter, Kingsford charcoal, Hidden Valley and K C Masterpiece dressings and sauces, Brita water-filtration systems, Burt's Bees natural personal care products and Glad bags, wraps and containers.
Clorox announced its second quarter fiscal year 2010 results today, with net earnings of $110 million, or 77 cents per share. That's up 26 percent from $86 million, or 61 cents per share, in the same period a year ago.
The company said sales of its disinfecting products benefited from consumer demand associated with the H1N1 flu pandemic. Its stock closed at $60.66 Wednesday and was trading at $60.75 in pre-market trading today.
This article was provided by the Midland Daily News.