Deal to add Summer’s Eve, Fleet, Pedia-Lax, Phazyme, Boudreaux’s brands

TARRYTOWN, N.Y. — Prestige Brands Holdings Inc. plans to buy over-the-counter medicine and personal care manufacturer C.B. Fleet Co. from private equity firm Gryphon Investors for $825 million in cash.

Prestige Brands said Fleet’s product lineup will bring leading brands in the women’s health, gastrointestinal and pediatric care categories, and the Lynchburg, Va.-based company’s global offerings include more than 100 health and beauty products.

Leading brands from Fleet include Summer’s Eve feminine hygiene products, Fleet disposable enemas, Pedia-Lax children’s laxatives for children, Phazyme anti-gas medication and the Boudreaux’s baby care products.

Summer’s Eve, which accounts for about 65% of the Fleet portfolio’s sales, holds a No. 1 market share position in the feminine care category, Prestige Brands noted. Meanwhile, the Fleet brand has the No. 1 market share in enemas and glycerin suppositories, and Pedia-Lax holds the top share in pediatric laxatives.

“Based on Fleet’s long history of connecting with consumers, new product expansions and leading market-share positions, we believe the company is well-positioned for long-term growth and fits into our well-established brand-building platform,” stated Ron Lombardi, chief executive officer of Prestige Brands. “The acquisition of Fleet further enhances our women’s health care platform, currently anchored by Monistat, with the addition of Summer’s Eve. Upon closing, Summer’s Eve will also be our largest brand, with over $125 million in sales. In addition, the transaction adds the leading brands of Fleet and Pedia-Lax to our gastrointestinal category, expanding the brands we offer in this category.”

The acquisition also will bring Fleet’s “mix and fill” manufacturing facility in Lynchburg to Prestige Brands. The company said it expects to leverage the facility — which makes products accounting for about two-thirds of Fleet’s sales — by expanding production to include current Prestige offerings.

“The acquisition is also a key step in aligning our portfolio with our long-term stated goal of 2% to 3% organic growth,” Lombardi added. “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.”

Prestige Brands’ portfolio includes Monistat women’s health products, BC and Goody’s pain relievers, Clear Eyes eye care products, DenTek specialty oral care products, Dramamine motion sickness treatments, Chloraseptic sore throat treatments, Compound W wart treatments, Little Remedies pediatric care products, The Doctor’s NightGuard dental protector, Efferdent denture care products, Luden’s throat drops, Beano gas prevention and Debrox earwax remover, as well as Gaviscon antacid in Canada and Hydralyte rehydration products and Fess nasal and sinus care products in Australia.

San Francisco-based Gryphon originally invested in Fleet in October 2014. “We have achieved our original vision for Fleet and created a valuable strategic asset by substantially increasing revenue and profitability through focused business-building efforts and brand revitalization led by our strong management team and chairman Steve LaMonte,” commented Dennis O’Brien, a partner at Gryphon and the head of its operations resources group.

Keith Stimson, the head of Gryphon’s consumer group, added, “We are extremely happy with the outcome of this transaction, which was the result of our Group’s multiyear focus on the personal health care and OTC space. We achieved our goal of reaching agreement on a sale that positions Fleet for continued success.”

Gryphon said it expects the transaction to be completed in the first quarter of 2017, pending regulatory approval and other customary closing conditions.

Earlier this month, Prestige Brands sold its DermoPlast first aid spray brand to Moberg Pharma AB. That transaction followed Moberg’s purchase of Prestige’s New Skin liquid bandage, PediaCare pediatric medicine and Fiber Choice digestive health brands this past summer.

Also this month, Prestige Brands agreed to license its Massengill feminine hygiene brand to NaturePlex LLC.