News Releases
Adds Leading Brand to Women’s Health Portfolio
Acquisition Positions the Company for Pro Forma Revenue of
Approximately
Moves Prestige Towards its Targeted Mix of “Invest-for-Growth” Brands
The transaction will add leading brands to the company’s Women’s Health,
Gastrointestinal and Pediatric Care categories with revenues of
approximately
The acquisition of Fleet is consistent with Prestige’s disciplined M&A
criteria and offers opportunities for long-term brand-building and
synergies as the Company expands its position in the Women’s Health and
GI categories. In addition, Fleet operates a “mix and fill”
manufacturing facility in
Commentary
He added, “The acquisition is also a key step in aligning our portfolio with our long-term stated goal of 2-3% organic growth. We believe the addition of Fleet's manufacturing facility also provides strategic benefits and cost synergies as we look to expand manufacturing to include current Prestige products. Over time, we also expect to take advantage of Fleet R&D resources to enhance our new product development capabilities.”
Mr. Lombardi concluded, “This acquisition is consistent with our proven M&A strategy that focuses on acquiring brands with long term brand building opportunities, including new products and innovations and quickly integrating them into the Prestige business, resulting in meaningful synergies and cost savings. The expected integration and transition is consistent with our past acquisitions and our demonstrated core competency of acquiring, integrating and growing business through investment and brand support.”
Financial Outlook
The Company anticipates closing on this transaction by the end of its fiscal fourth quarter of 2017, subject to satisfaction of customary closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976.
Dependent on the timing of the closing, Prestige anticipates credit
agreement defined pro forma Debt-to-EBITDA leverage at closing of
approximately 5.8x, with an expectation to reduce its Debt-to-EBITDA
leverage to approximately 5.0x by the end of Fiscal 2018. The
anticipated Fiscal 2018 pro forma Adjusted EBITDA implies a purchase
price multiple of approximately 11x. Prestige has secured a financing
commitment for the full amount needed to consummate the transaction and
may choose to fund a portion of the transaction with excess cash on
hand, bank debt, bonds and/or common equity. The Company will be
providing further detail on the transaction on its Fiscal 2017 third
quarter earnings call in early
Conference Call & Presentation
The Company will host a conference call tomorrow
About
The Company markets and distributes brand name over-the-counter and
household cleaning products throughout the U.S. and
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
"will," "would, " "expect," "plan," "continue," “anticipate” (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, organic growth,
cash flow, earnings per share and leverage; the impact of the
acquisition on the Company’s brand-building and product development
initiatives; the ability to achieve synergies from the acquisition; the
Company’s plans for the Fleet manufacturing facility and R&D resources;
the Company’s expected financing for the transaction; and the success of
the Company’s strategy of acquiring, integrating and building brands.
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 satisfaction of the closing conditions, including approval
under the Hart-Scott Rodino Antitrust Improvements Act, general economic
and business conditions, the Company’s ability to successfully integrate
the Fleet brands, manufacturing facility and R&D resources, competitive
pressures, unexpected costs or liabilities, and disruptions resulting
from the integration. 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
View source version on businesswire.com: http://www.businesswire.com/news/home/20161222005798/en/
Source:
Prestige Brands Holdings, Inc.
Phil Terpolilli, 914-524-6819
pterpolilli@prestigebrands.com