The rating on Princeton, N.J.-based Church&Dwight Co. Inc. reflects the company's participation in the highly competitive personal care segment of the consumer products industry, its lack of geographic diversity, and its somewhat aggressive acquisition strategy. This is mitigated to an extent by its established consumer brands, stable operating performance, good free cash flow generation, and moderately leveraged balance sheet. While the company maintains leading brands, such as Arm&Hammer and Trojan, it competes against much larger companies, such as Procter&Gamble Co. and Colgate-Palmolive Co. (both AA-/Stable/A-1+), with much greater resources to promote and market products. Church&Dwight's operations also are less geographically diverse than those of many of its competitors, as about 80% of
