Burt's Bees is Purchased by Clorox
We at TreeHugger have been big fans of Burt's Bees. We first covered them a few years ago and this past summer we wrote about their Greater Good campaign and additionally we spoke with Mike Indursky, the company's Chief Marketing Officer. But admittedly, we never saw this one coming. Last week Clorox announced that they will be purchasing the privately held company for a whopping $925 million — in cash.
"The Burt's Bees brand is well-anchored in sustainability and health and wellness, and we believe it will benefit from natural and 'green' tailwinds," said Clorox Chief Executive Donald R. Knauss. Hmm, could this be a case of greenwashing because consumers prefer natural products these days? On the same day of the announcement, Clorox said that its first-quarter profits fell to $111 million, or 76 cents per share, from $112 million, or 73 cents per share, a year ago. Knauss continued, "It's in an economically attractive category with a margin structure that will be highly accretive to Clorox."