Leading consumer products company, Church & Dwight Co. Inc. ( CHD - Snapshot Report ) , recently announced that it has completed the acquisition of Avid Health Inc., maker of gummy vitamins and supplements, for $650 million in cash.

The company funded the acquisition with a mix of debt including $400 million Senior Notes at 2.875% scheduled to mature in 2022 and commercial papers, and cash. The company added that the acquisition will lower its projected 2012 earnings by 2 cents.

The company earlier forecasted earnings to be in the range of $2.41 – $2.43 per share for 2012, indicating an increase of 9% – 10%, excluding charges of 9 cents related to deferred tax valuation in 2011.

Also, the company added that the Avid acquisition will be accretive to the earnings in 2013 and will boost the bottom line by 4% to 6%. Church & Dwightearlier had projected 2013 earnings in the range of $2.73 – $2.78, up 13% – 15% year over year.

Moreover, the acquisition will expand the product categories of the company and facilitate it to gain market share in one of the fastest growing segments of the vitamin/mineral/supplement (VMS) business. Avid is the market leader in gummy form VMS business along with strong sales trend, which tripled over the last three years.

The company expects innovative new product launches to continue boosting organic sales in the upcoming quarters and anticipates organic revenue growth to be at the higher end of the projected rate of 3% – 4% in 2012.

Currently, we maintain a long-term Neutral recommendation on the stock. Moreover, Church & Dwight, which competes with Clorox Corporation ( CLX - Analyst Report ) , carries a Zacks #3 Rank, implying a short-term Hold rating.