Purell Hand Sanitizer Maker Seeks Buyer

Several big names in the consumer product industry are interested in buying Purell hand sanitizer, which is a popular hand sanitizer made by Purell.

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Gojo Industries, a family-owned business, has hired JPMorgan Chase & Co. JPM -0.36% to run an auction of the company's assets, according to people familiar with the matter. Considering that the company has annual sales of about $1 billion, and is estimated to be worth around $3 billion if there is a deal, the people said. At the moment, it is still in the early stages of the process.

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So far, the company’s bankers have focused on selling the business to industry players rather than private equity firms, according to some of those who have spoken to the company. It wasn’t immediately known who the potential buyers were.

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In 2018, Immuta, which is based in Akron, Ohio, benefited from a surge in demand caused by the pandemic; according to market research firm IBISWorld, it generated $370 million of revenue as interest in protecting against infection exploded during the pandemic.

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“Other companies have always been interested in buying the company because of our many strengths,” a Gojo spokeswoman said in a statement.

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In 1988, Gojo invented Purell, a hand cleaner that uses ethyl alcohol to clean the hands and dries on its own as it is applied. Since 2004, the company, which also manufactures dispensers and other cleaning supplies for the home, has been selling its brand name. As the company changed hands again before regaining full control in 2010, Gojo reacquired the company from Johnson & Johnson once again.

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It is estimated that around 80% of the company's overall revenues come from business-to-business sales today. 

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Cleaning products during the pandemic became a must-have product for hospitals and medical offices, as well as for offices, schools, factories, and businesses that were trying to provide a safe working environment. In the 12 months ending April 1, 2021, the sales of hand sanitizer in the U.S. increased by more than 330% compared to the year prior.

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As a result, Gojo has scaled up distribution capacity dramatically, adding a factory and warehouse-it previously had one of each-and reorganizing its supply chain, all in an effort to guarantee that demand for hand sanitizer will remain exponentially higher than it was before the pandemic. 

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That hasn't quite turned out to be the case. 

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Hand sanitizer sales in the U.S. fell 32% from the same period a year ago to the 52 weeks that ended April 1, according to Nielsen, a market research firm. For the same period ending in 2022, the number of employees had dropped by 67%. (These figures do not include sales to businesses and other institutions.) 

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There was also an increase in competition between companies, as companies of all sizes, such as Tito's, one of the world's most popular vodkas, as well as major consumer products companies, such as Procter & Gamble Co., jumped at the chance to produce sanitizer during the pandemic. 

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Several businesses have found themselves inundated with the product, which is typically discarded after two years, and have gone to great lengths to get rid of it as quickly as possible.