Prestige Brands Holdings, Inc. (NYSE:PBH) today announced its acquisition of Care Pharmaceuticals Pty Ltd. (“Care”) of Bondi Junction, New South Wales, Australia, a privately-held marketer and distributor of over-the-counter (OTC) healthcare brands for children and adults. The acquisition is effective July 1, 2013.
Care’s brands are sold throughout Australia and New Zealand, and in other parts of the Asia Pacific region. The Company’s principal brand is the Fess® line of cold/allergy and saline nasal health products which includes the leading saline spray for both adults and children in Australia. Other key brands include Painstop® analgesic, Rectogesic® for rectal discomfort, and the Fab® line of nutritional supplements. Prestige already has a presence in the region with Murine® and Clear Eyes®, among the leading OTC eye care brands in Australia and New Zealand.
Annual revenues for Care are approximately $20 million (AUD). Financial terms of the acquisition have not been disclosed. Prestige funded the acquisition with a combination of its existing credit facility and cash on the balance sheet.
CommentaryIn making the announcement, Prestige CEO Matthew M. Mannelly commented, “We are very pleased with the acquisition of Care Pharmaceuticals, an OTC products company which is a great strategic fit with Prestige. Care operates under the same business model as Prestige, has an impressive portfolio of well-known brands and a track record of growth and innovation,” he said. “The acquisition of Care provides a new and expanded platform for Prestige in the growing Asia Pacific region. Like Prestige, Care is well-known for building brands and has created a portfolio of products which complements our existing OTC product lines. Combining the strengths of two companies with expertise in brand building and innovation provides the opportunity to leverage an expanded portfolio with both retail customers and consumers,” Mr. Mannelly continued. “We welcome Malcolm Yesner, President of Care, and his team of 35 employees, to the Prestige team. Care has a strong management team, and under Malcolm’s leadership, the Company has grown impressively through innovation, new product development and meeting consumer needs. We look forward to integrating our companies to work together as one team to build our business in this fast-growing geographic region,” he said.