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IRVINGTON, N.Y. — Prestige Brands Holdings Inc. plans to acquire 17 over-the-counter pharmaceutical brands sold in North America from GlaxoSmithKline in $660 million cash deal.
Prestige Brands said Tuesday that brands it agreed to acquire from GSK include BC, Goody’s and Ecotrin pain relievers; Beano, Gaviscon, Phazyme, Tagamet and Fiber Choice gastrointestinal medicine brands; and the Sominex sleep aid brand.
Matthew Mannelly, chief executive officer of Prestige Brands, noted that the deal marks the biggest acquisition in the company’s history. The transactions are slated to close in the first half of 2012, pending regulatory approval and other closing conditions.
"The signing of these agreements with GSK is a transformational event for Prestige Brands. It fulfills our commitment to create shareholder value by acquiring well-known OTC brands with strong consumer franchises and applying our marketing and sales expertise to them," Mannelly said in a statement. "These transactions, upon completion, will be the largest acquisitions of assets in the company’s history, following on the heels of our recent acquisitions of five brands from Blacksmith Brands and Dramamine from Johnson & Johnson over the past year."
He noted that the deal will give Prestige Brands " a strengthened portfolio" with total OTC revenue of about $500 million, including platforms to compete in two new categories: adult aspirin-based analgesics and gastrointestinal.
"We believe the acquisitions are consistent with our strategic direction, fit with our fixed asset-light outsourced model, provide opportunities for certain cost savings, are financially attractive to shareholders and will result in annual corporate revenues of approximately $600 million with an OTC business segment representing 85% of revenues and 90% of profits," Mannelly stated.
Prestige’s brand portfolio include such well-known names as Compound W wart treatments, Chloraseptic sore throat relief and allergy treatment products, New-Skin liquid bandage, Clear Eyes and Murine eye care products, Little Remedies pediatric products, and The Doctor’s NightGuard dental protector, as well as the Efferdent denture cleaner, Effergrip denture adhesive cream, PediaCare cough/cold/allergy/sinus and fever remedy for infants and children, Luden’s throat drops and NasalCrom allergy prevention nasal spray acquired from BlackSmith. The company also holds the Comet and Spic and Span household cleaner brands.
