Full Press Release Details
Brands Holdings, Inc. completes sale of DermoPlast to Moberg Pharma AB; Licenses Massengill
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 7th, 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 1st, 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,
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.