Armor All Buys Borden’s Car Care Line

Armor All Products said Monday that it has acquired the automotive care products line of its major competitor, Borden Inc., for about $26 million cash.

The deal will make Armor All the nation’s biggest manufacturer of car appearance products.

The company, which manufacturers the Armor All line of car protection, wash and wax products, said the acquisition will be financed through cash reserves and short-term borrowings but would not specify how much it was borrowing.

Borden’s car care division markets car wax products under the Rain Dance and Rally brand names, and a line of engine additives under the No. 7 label.

According to A. C. Nielsen Co., Armor All already is the top manufacturer of auto vinyl and rubber preservatives. Armor All Protectant, for which the Irvine firm is probably best known, is used on everything from ladies’ handbags to vinyl auto tops and upholstery and commands an impressive 90% share of the market. In December, the company also launched what has become a successful line of car wash and wax products with a $5-million media blitz.

Armor All will control the largest segment of the wash and wax market once the Borden deal is completed. According to the most recent Nielsen data, Borden has 18.4% of that market while Armor All commands a 19.7% share. The acquisition will give Armor All 38.1% of the market. Rival Turtle Wax, which already has suffered from Armor All’s charge into the car wash and wax field, had been the industry leader with a 43% of the market, according Nielsen, but has seen its share shrink to 31% since December.

Borden car care had sales of about $15 million in the first six months of the year. McKesson Corp., which owns 83% of Armor All, said the new Armor All wash and wax products alone accounted for close to $12 million in revenue in the final quarter of the company’s 1988 fiscal year, ended March 31. For the first quarter of its current fiscal year, Armor All posted earnings of $6.4 million and sales of $34.4 million.