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From their press release (which came out in mid-afternoon during yesterday's 6% drop):

PRINCETON, N.J.--(BUSINESS WIRE)--July 7, 2008--Church & Dwight Co., Inc. (NYSE:CHD), makers of Arm & Hammer(R) products, today announced that it has completed its previously announced acquisition of the Del OTC pharmaceutical business from Coty Inc.

The transaction was completed substantially under the original terms announced on April 1, 2008, which called for Church & Dwight to pay $380 million in cash at closing.

The purchase price was financed with a $250 million addition to its bank credit facility and available cash.

"The Orajel brand will be a great addition to the Church & Dwight family," said James R. Craigie, Chairman and Chief Executive Officer. "We are excited to expand our personal care portfolio and strengthen our presence in the strategic oral care category."

As previously announced, the acquisition is expected to have a neutral impact on 2008 earnings per share due primarily to one-time integration costs and the step-up of inventory. "We expect it to be accretive in 2009 and contribute meaningfully to earnings and free cash flow," Mr. Craigie concluded.

While I've been following CHD (about 8 years), Craigie has built a very good track record for acquisitions, essentially turning a modest baking soda manufacturer into a substantial consumer-products company. Maybe this additional debt is making people nervous when combined with the raw materials issues. Also, someone who's looking to get rich quick will react negatively to the 'neutral impact on 2008 earnings. To me that sound like a chance to add to my stake.

Like most of my investments, it comes down to the people involved. These guys have made very good decisions about acquisitions in the past.

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