Prestige Brands Holdings, Inc. to Sell Three Brands to Moberg Pharma AB
June 30, 2016, TARRYTOWN, NY —BUSINESS WIRE — Prestige Brands Holdings, Inc. (NYSE:PBH) (the “Company” or “Prestige”) announced today that it has entered into an agreement for the sale of three of its non-core over-the-counter healthcare products to Moberg Pharma AB (OMX: MOB) of Stockholm, Sweden for $40.0 million USD in cash.
The transaction includes New Skin®, PediaCare® and Fiber Choice®, which in fiscal 2016 represented approximately $25 million USD in revenues for Prestige, or 3% of Company sales in fiscal 2016.
These divestitures will enable the Company to move closer to its stated goal of having a portfolio consisting of 85% of its revenue from “invest for growth” brands and 15% in “manage for cash” brands to help support long-term organic growth.
The Company plans to use proceeds from the divestiture to pay down debt and accelerate de-leveraging. The transaction is expected to close during Prestige’s fiscal second quarter, which begins on July 1, 2016, subject to closing conditions.
Sawaya Segalas & Co., LLC is acting as exclusive financial advisor to Prestige in this transaction.
About Prestige Brands Holdings, Inc.
Prestige Brands markets and distributes brand name over-the-counter healthcare and household cleaning products throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s brands include Monistat® women’s health products, BC® and Goody’s® pain relievers, Clear Eyes® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Chloraseptic® sore throat treatments, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, The Doctor’s® NightGuard® dental protector, Efferdent® denture care products, Luden’s® throat drops, Beano® gas prevention, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia.