Prestige Brands Holdings, Inc. Acquires Care Pharmaceuticals, an Australian OTC Healthcare Products Company
Prestige Brands Holdings, Inc. (NYSE:PBH) today announced its
acquisition of Care Pharmaceuticals Pty Ltd. (“Care”) of Bondi Junction,
New South Wales, Australia, a privately-held marketer and distributor of
over-the-counter (OTC) healthcare brands for children and adults. The
acquisition is effective July 1, 2013.
Care’s brands are sold throughout Australia and New Zealand, and in
other parts of the Asia Pacific region. The Company’s principal brand is
the Fess® line of cold/allergy and saline nasal health products which
includes the leading saline spray for both adults and children in
Australia. Other key brands include Painstop® analgesic, Rectogesic® for
rectal discomfort, and the Fab® line of nutritional supplements.
Prestige already has a presence in the region with Murine® and Clear
Eyes®, among the leading OTC eye care brands in Australia and New
Zealand.
Annual revenues for Care are approximately $20 million (AUD). Financial
terms of the acquisition have not been disclosed. Prestige funded the
acquisition with a combination of its existing credit facility and cash
on the balance sheet.
Commentary
In making the announcement, Prestige CEO Matthew M. Mannelly commented,
“We are very pleased with the acquisition of Care Pharmaceuticals, an
OTC products company which is a great strategic fit with Prestige. Care
operates under the same business model as Prestige, has an impressive
portfolio of well-known brands and a track record of growth and
innovation,” he said.
“The acquisition of Care provides a new and expanded platform for
Prestige in the growing Asia Pacific region. Like Prestige, Care is
well-known for building brands and has created a portfolio of products
which complements our existing OTC product lines. Combining the
strengths of two companies with expertise in brand building and
innovation provides the opportunity to leverage an expanded portfolio
with both retail customers and consumers,” Mr. Mannelly continued.
“We welcome Malcolm Yesner, President of Care, and his team of 35
employees, to the Prestige team. Care has a strong management team, and
under Malcolm’s leadership, the Company has grown impressively through
innovation, new product development and meeting consumer needs. We look
forward to integrating our companies to work together as one team to
build our business in this fast-growing geographic region,” he said.
Mr. Yesner commented, “I am very proud of the work our team has done to
build a vital business, and we are pleased to be a part of the Prestige
team. Care and Prestige share a common culture focused on building
brands, innovation and new products. We look forward to integrating the
Murine and Clear Eyes businesses into our growing portfolio and look to
expand the geographic opportunities for Care’s products through
Prestige’s existing distributor network. Together we can continue to
build a portfolio which benefits from the core strengths of both
companies,” he said.
“The acquisition of Care is our fourth acquisition in the past four
years, and an excellent match with our acquisition criteria,” Mr.
Mannelly said. “We anticipate a smooth transition as we integrate our
operations. The acquisition is expected to be accretive to earnings per
share for fiscal year 2014, exclusive of transaction costs and purchase
accounting related items, with minimal impact on our leverage level,” he
said.
Sawaya Segalas, Inc. LLC acted as exclusive financial advisor to
Prestige Brands on 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, and in
certain international markets. Core brands include Chloraseptic® sore
throat treatments, Clear Eyes® eye care products, Compound W® wart
treatments, The Doctor's® NightGuard® dental protector, the Little
Remedies® and PediaCare® lines of pediatric over-the-counter products,
Efferdent® denture care products, Luden's® throat drops, Dramamine®
motion sickness treatment, BC® and Goody's® pain relievers, Beano® gas
prevention, Debrox® earwax remover, and Gaviscon® antacid in Canada.
Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of the federal securities laws that are intended to qualify for
the Safe Harbor from liability established by the Private Securities
Litigation Reform Act of 1995. "Forward-looking statements" generally
can be identified by the use of forward-looking terminology such as
"assumptions," "target," "guidance," "outlook," "plans," "projection,"
"may," "will," "would," "expect," "intend," "estimate," "anticipate,"
"believe”, "potential," or "continue" (or the negative or other
derivatives of each of these terms) or similar terminology. The
"forward-looking statements" include, without limitation, statements
regarding the expected impact on earnings and our ability to create a
new platform and continue to build a portfolio for both companies, to
integrate the Murine and Clear Eyes businesses with the Care
Pharmaceutical business, expand geographic opportunities, and smoothly
integrate the businesses and operations. These statements are based on
management's estimates and assumptions with respect to future events and
financial performance and are believed to be reasonable, though are
inherently uncertain and difficult to predict. Actual results could
differ materially from those expected as a result of a variety of
factors, including the impact of foreign exchange, general economic and
business conditions, our ability to successfully integrate Care
Pharmaceuticals and its brands, competitive pressures, unexpected costs,
liabilities and disruptions resulting from the integration, natural
disasters or acts of terrorism, or adverse changes in the laws of the
countries in which the Company’s products are sold. A discussion of
other factors that could cause results to vary is included in the
Company's Annual Report on Form 10-K for the year ended March 31, 2013
and other periodic reports filed with the Securities and Exchange
Commission.
Copyright Business Wire 2013