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Prestige Brands Divests Household Cleaning Products
Print Article Contributed by BSM Staff

TARRYTOWN, NY -- Prestige Brands Holdings, Inc., a distributor of brand name over-the-counter healthcare products in the U.S. and abroad, has agreed to the sale of its household cleaning business for $69 million in cash.

The transaction includes Comet, Spic and Span, Cinch, Chore Boy and Chlorinol household product brands and related inventory.  With the sale of these brands the company’s portfolio will be comprised entirely of consumer healthcare brands. 

The divestiture enables the company to further concentrate its brand-building efforts around its “invest for growth” consumer healthcare brand portfolio to help support long-term organic growth. The company plans to use the net proceeds from the divestiture to pay down debt.

“This divestiture is another positive step in the transformation of Prestige into a focused, leading consumer healthcare company,” said Ron Lombardi, CEO. “The sale of our household cleaning portfolio enables further emphasis on our leading ‘Core’ Consumer Healthcare portfolio of brands, which are well positioned for long-term growth. The transaction aligns with the company’s three pillar strategy of brand-building, maintaining a strong financial profile, and capital allocation alternatives that generate long-term shareholder value.”

The Household Cleaning portfolio contributed $80.6 million or 8 percent of total company sales in fiscal 2018.  In its Fiscal 2019 outlook issued on May 10, 2018, the company expected the Household Cleaning business to provide revenue of approximately $78 million and E.P.S. of approximately $0.17.

The Company plans to provide a full update on this transaction and its impact to the prior fiscal 2019 outlook when it reports the results of the first quarter fiscal 2019 on August 2, 2018 before the opening of the market. 

Sawaya Partners is acting as exclusive financial advisor to Prestige in this transaction.

Prestige Brands markets and distributes brand-name, over-the-counter healthcare products throughout the U.S. and Canada, Australia, and in certain other international markets. The company’s brands include Monistat and Summer’s Eve women’s health products, BC and Goody’s pain relievers, Clear Eyes eye care products, DenTek specialty oral care products, and others.

For more information, go to www.prestigebrands.com.

 

 

 

 

 

 

 

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