News Releases
Adds New Platform in Feminine Care & Strengthens the
The transaction will extend Prestige’s portfolio of iconic OTC brands to
include Insight’s leading feminine care platform anchored by Monistat®,
the #1 brand in OTC yeast infection treatment. Insight’s portfolio also
includes EPT® home pregnancy test products and other feminine care
brands. The acquisition will give Prestige a leading platform in
feminine care in the U.S. and
The acquisition of Insight is consistent with Prestige’s disciplined M&A criteria and well-established brand building strategy. Insight’s key brand potential, high gross margin and attractive cash flow characteristics will further enhance Prestige’s already industry-leading financial profile. The transaction is expected to be immediately accretive to the Company’s earnings per share and free cash flow per share, exclusive of transaction, integration and purchase accounting items.
The Company anticipates closing on this transaction during the first half of this fiscal year, subject to customary closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976. Financing for the transaction is expected from a combination of cash on the balance sheet, use of Prestige’s revolving credit agreement, and an add-on to its existing term loan.
Commentary
According to
“The acquisition is expected to boost Prestige’s annual revenues to
approximately
“In the last five years, our proven management team has led a dramatic
transformation of our company into a diversified OTC healthcare products
company with a portfolio of iconic brands,” Mr. Mannelly continued. “The
acquisition of Insight is our largest transaction yet, and is in the
‘sweet spot’ of our demonstrated core competency of acquiring,
integrating and growing businesses through investment in brand support
and innovation. We anticipate a smooth integration of the Insight brands
in the U.S. and
Conference Call & Presentation
The Company will host a conference call today at
Non-GAAP Financial Measures
Pro forma adjusted EBITDA is a non-GAAP financial measure arrived at by
taking pro forma net income of
About
The Company markets and distributes brand name over-the-counter and
household cleaning products throughout the U.S.,
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," "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,
earnings per share, free cash flow and the Company’s financial profile,
the impact of the acquisition on the Company’s portfolio of brands, the
Company’s expected financing, our ability to create and support a new
platform, grow the brand and build a portfolio, and the expected smooth
integration of the 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, our ability to
successfully integrate the Insight Pharmaceutical and Hydralyte brands,
regulatory matters, 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
Source:
Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819