Prestige makes blockbuster acquisition: 17 GSK legacy brands
IRVINGTON, N.Y. — Prestige on Tuesday acquired 17 over-the-counter brands from GlaxoSmithKline for a total of $660 million in cash. Among the brands Prestige acquired are the pain relievers BC, Goody's and Ecotrin brands; digestive brands Beano, Gaviscon, Phazyme, Tagamet and Fiber Choice; and the Sominex sleep aid brand.
"We expect that upon completion, the transactions will give our company a strengthened portfolio with total OTC revenues of approximately $500 million, as well as platforms to compete in two new categories: adult aspirin-based analgesics and gastrointestinal," Prestige CEO Matthew Mannelly said. "We believe the acquisitions are consistent with our strategic direction, fit with our fixed asset-light outsourced model, provide opportunities for certain cost savings, are financially attractive to shareholders and will result in annual corporate revenues of approximately $600 million with an OTC business segment representing 85% of revenues and 90% of profits."
Prestige has expanded its product portfolio through acquisition by leaps and bounds in the past year with its acquisition of Blacksmith Brands and Dramamine from Johnson and Johnson.
The transactions are expected to be completed in the first half of calendar year 2012 subject to customary legal and regulatory closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as applicable, and the company closing on its committed financing for the acquisitions.