Supplier News Breaks
Prestige Brands to acquire Blacksmith Brands
September 20th, 2010
IRVINGTON, N.Y. – Prestige Brands Holdings Inc. plans to buy all of the stock of Blacksmith Brands Holdings Inc. for $190 million in cash.
With the deal, expected to close in November, Prestige will acquire five leading over-the-counter brands: Efferdent denture cleaner, Effergrip denture adhesive cream, PediaCare cough/cold/allergy/sinus and fever remedy for infants and children, Luden's throat drops and NasalCrom allergy prevention nasal spray.
Prestige said Monday that the acquisition of Blacksmith, a unit of private equity firm Charlesbank Capital Partners, furthers its strategy of boosting the company's presence in the OTC market. Prestige's current brand portfolio include such well-known names as Compound W wart treatments, Chloraseptic sore throat relief and allergy treatment products, New-Skin liquid bandage, Clear Eyes and Murine eye care products, Little Remedies pediatric products, and The Doctor's NightGuard dental protector. The company also holds the Comet and Spic and Span household cleaner brands.
"Strategic acquisitions in the OTC market are core to our shareholder value-creation strategy. We are strengthening Prestige's position in key categories with the additions of Efferdent, PediaCare and Luden's. These three scale brands compete in attractive categories we know well, and they provide a clear path for shareholder value creation through increased brand support and line extensions," Prestige chief executive officer Matthew Mannelly said in a statement.
"This transaction is consistent with our strategy of acquiring businesses that have strong consumer franchises and are important to retailers," Mannelly added.
With the announcement of the Blacksmith acquisition, Prestige also said it has sold its Cutex line of nail polish removers to Arch Equity Partners of St. Louis, effective Sept. 1. Terms of the deal weren't disclosed. Prestige said Cutex was the largest remaining product in its personal care segment.
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