Prestige Brands Holdings, Inc. to Sell Three Brands to Moberg Pharma AB
Prestige Brands Holdings, Inc. has entered into an agreement for the sale of three of its non-core over-the-counter healthcare products to Moberg Pharma AB 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.
