IRVINGTON, N.Y. — Prestige Brands Holdings Inc. has entered into an agreement to acquire the assets associated with the Dramamine business in the United States from McNeil-PPC Inc. for $76 million.
Prestige said late Thursday that the cash transaction, pending regulatory approval and other closing conditions, is slated to close before the end of January.
According to the consumer products company, which offers a range of over-the-counter health care products and nonprescription medicines, Dramamine is the nation’s No. 1 brand in the OTC motion sickness category, with an estimated market share of approximately 32%. Dramamine products are used for the prevention and treatment of nausea, vomiting and dizziness symptoms related to motion sickness.
"Strategic acquisitions in the OTC market are core to our shareholder value creation strategy. Dramamine represents a continuation of our strategy to acquire OTC brands that are broadly recognized by consumers, are important to retailers and have strong positions in their categories. We are strengthening Prestige’s portfolio of leading brands in attractive OTC categories with the addition of Dramamine," Prestige Brands chief executive officer Matthew Mannelly said in a statement.
"The company expects to quickly and smoothly integrate Dramamine into the Prestige portfolio and drive growth through enhanced brand support," Mannelly added. "Prestige has made a significant commitment to invest behind our key brands in the portfolio and intends to extend this investment philosophy to Dramamine when the acquisition is completed."
Last month, Prestige picked up five OTC health care brands in completing the acquisition of Blacksmith Brands Holdings Inc. The deal added 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 to Prestige’s product portfolio.
Other brands in Prestige’s OTC portfolio include 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. The company also holds the Comet and Spic and Span household cleaner brands.
