Prestige Brands : completes sale of DermoPlast® to Moberg Pharma AB; Licenses Massengill®
December 07, 2016 at 02:58 pm EST
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TARRYTOWN, N.Y.--(BUSINESS WIRE)-- December 7, 2016-- Prestige Brands Holdings, Inc. (NYSE:PBH) (the 'Company' or 'Prestige') announced today that it has entered into an agreement for the sale of the DermoPlast® brand to Moberg Pharma AB (OMX: MOB) for $47.6 million USD in cash plus inventory. The transaction is expected to be completed during December 2016, and reflects the exercise by Moberg Pharma of its previously announced option to purchase DermoPlast® by December 2017. The sale of DermoPlast follows the sale of three other non-core over-the-counter healthcare brands - New Skin®, PediaCare® and Fiber Choice® - to Moberg Pharma on July 7, 2016. On an annual basis, the Company expects the financial impact from the sale of DermoPlast® to represent approximately $12 million USD in net sales and approximately $0.06 in EPS.
Separately, as previously announced by NaturePlex, LLC (NaturePlex) on December 1, 2016, Prestige has agreed to license its Massengill® brand to NaturePlex. The Massengill brand is considered part of Prestige's non-core portfolio, and the impact to Prestige financials from the licensing of the brand is not material to the Company's results.
The Company plans to use proceeds from the DermoPlast divestiture to pay down debt and accelerate de-leveraging. These divestitures will also 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.
Sawaya Segalas & Co., LLC acted as exclusive financial advisor to Prestige in this transaction.
About Prestige Brands Holdings, Inc.
The Company markets and distributes brand name over-the-counter 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. Visit the Company's website at www.prestigebrands.com.
Prestige Brands Holdings Inc. published this content on 07 December 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 December 2016 19:58:08 UTC.
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Prestige Consumer Healthcare Inc. is engaged in the development, manufacturing, marketing, sales and distribution of over-the-counter (OTC) health and personal care products to mass merchandisers, drug, food, dollar, convenience, club and e-commerce stores in North America (the United States and Canada) and in Australia and certain other international markets. The Company operates through two segments: North American OTC Healthcare and International OTC Healthcare. Its diverse portfolio of brands include Monistat and Summerâs Eve women's health products, BC and Goody's pain relievers, Clear Eyes and TheraTears eye care products, DenTek specialty oral care products, Dramamine motion sickness treatments, Fleet enemas and glycerin suppositories, Chloraseptic and Luden's sore throat treatments and drops, Compound W wart treatments, Little Remedies pediatric over-the-counter products, Boudreauxâs Butt Paste diaper rash ointments, Nix lice treatment, Debrox earwax remover, and others.
PRESTIGE CONSUMER HEALTHCARE INC. 
