Acquisition Will Double Australian Subsidiary’s Revenues
TARRYTOWN, N.Y.--(BUSINESS WIRE)--Apr. 15, 2014--
Prestige Brands Holdings, Inc. (NYSE-PBH) today announced the signing of
a purchase agreement for the acquisition of Hydralyte™ in Australia and
New Zealand from The Hydration Pharmaceuticals Trust of Victoria,
Australia. The acquisition is expected to close, subject to customary
closing conditions, during the first quarter of fiscal 2015, which began
on April 1, 2014.
The acquisition is projected to double the annual revenues of Care
Pharmaceuticals, Prestige’s subsidiary in Australia, to approximately
$50 million (AUD) for fiscal 2015, and is expected to be accretive to
Prestige’s earnings per share for fiscal 2015, exclusive of transaction,
integration and purchase accounting items. Prestige acquired Care
Pharmaceuticals in July 2013.
Hydralyte is the leading over-the-counter (OTC) brand in oral
rehydration in Australia and New Zealand, and will be marketed and sold
through Care Pharmaceuticals. Hydralyte is available in pharmacies in
multiple forms and is indicated for oral rehydration following diarrhea,
vomiting, fever, heat and other ailments.
Financial terms of the acquisition have not been disclosed. Prestige
funded this acquisition, its fifth in the past five years, with a
combination of cash on the balance sheet and its existing credit
facility with very minimal impact on the Company’s leverage ratio or M&A
capacity.
Commentary
In making the announcement, Prestige CEO Matthew M. Mannelly commented,
“We are very pleased with the acquisition of Hydralyte in the Australia
and New Zealand markets. Hydralyte is a strong, strategic addition to
our portfolio. It is a high growth, market-leading OTC brand with a name
synonymous with oral rehydration among both consumers and healthcare
professionals. Hydralyte strengthens and complements our portfolio, is
expected to double the revenues of our Australian subsidiary and is
another step closer to our stated goal to grow our business in the
Austral-Asia region to $100 million.”
“Hydralyte is well-positioned to benefit from both Care and Prestige’s
core competencies in brand building and innovation. Care’s strong
management team under the leadership of Malcolm Yesner has a long track
record of successful brand building and driving sales growth by focusing
on consumer needs, innovation and new products,” he said. “In the nine
months since its acquisition, Care has already successfully integrated
Prestige’s Murine® eye care brands into its portfolio, and is now
well-positioned to integrate the Hydralyte acquisition. We look forward
to continuing to build and expand our strong portfolio in the
fast-growing Austral-Asia region,” Mr. Mannelly said.
Sawaya Segalas, & Co., 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.
About Care Pharmaceuticals, a Subsidiary of Prestige Brands Holdings,
Inc.
Care Pharmaceuticals of Bondi Junction, Australia is a leading marketer
and distributor of brand name over-the-counter healthcare products for
adults and children with an established portfolio of well-known consumer
brands. Among them are Fess® Nasal Sprays, Fab Iron® supplements, and
the Murine® eye care products line.
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
"project," "will," "expect," "goal," "positioned," 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 timing for consummating
the acquisition, the acquisition’s impact on revenues and earnings per
share, the impact of the acquisition on M&A capacity, our ability to
create a new platform, grow the brand and build a portfolio, expansion
of geographic opportunities, and the expected smooth integration of 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 in the forward-looking statements as a result of a
variety of factors, including the satisfaction of the closing
conditions, the impact of foreign exchange, general economic and
business conditions, our ability to successfully integrate Hydralyte,
competitive pressures, unexpected costs, liabilities and disruptions
resulting from the integration, or adverse changes in the laws of the
countries in which Hydralyte 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.
Except to the extent required by applicable securities laws, we are not
under any obligation to (and expressly disclaim any such obligation to)
update any forward-looking statements, whether as a result of new
information, future events, or otherwise. All statements contained in
this press release are made only as of the date of this release.
Source: Prestige Brands Holdings, Inc.
Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819