Drackett Could Help Johnson Wax Mop Up
It was a busy week for S.C. Johnson & Son. On Oct. 27, the company, popularly known as Johnson Wax, shelled out $1.15 billion for Bristol-Myers Squibb's Drackett household-products unit. Drackett, with annual revenues of $600 million, sells such brands as Windex glass cleaner, Drano drain opener, and Vanish toilet-bowl cleaner. Johnson CEO Richard Carpenter says Drackett has great growth potential, particularly overseas.
He'd better be right. Most analysts predicted Drackett would fetch around $900 million, but a bidding war drove up the price. On the other hand, Carpenter won't be around to see how things work: He's retiring. On Oct. 26, the company announced that William George Jr., chief operating officer of Johnson's worldwide consumer-products division, would become chief executive on Jan. 1.