Prestige Brands Holdings, Inc.
) recently announced that it has acquired Australia-based Care
Pharmaceuticals Pty Ltd. Effective from Jul 1, 2013, this
privately held marketer and distributor of over-the-counter (OTC)
healthcare products became a part of Prestige Brands. Financial
details of the deal were not provided. Prestige Brands saw its
share price moving up by 10.9% on the news.
This acquisition will strengthen Prestige Brands' portfolio
with Care Pharma's principal brand Fess and other brands
including Painstop, Rectogesic and Fab. Prestige Brands funded
this acquisition through an existing credit facility and cash on
We note that Prestige Brands is heavily into acquisitions. The
company acquired 17 brands in 2012 and 6 brands in 2011 in the
OTC Healthcare category, supplementing its existing OTC
On Jan 31, 2012, the company acquired 15 OTC healthcare
brands, including related contracts, trademarks and inventory
) and its affiliates. The other two brands, namely, Debrox and
Gly-Oxide, were acquired on Mar 30, 2012.
On Nov 1, 2010, the company acquired Blacksmith Brands
Holdings, Inc., which owned five brands, namely, Efferdent,
Effergrip, PediaCare, Luden's and NasalCrom. On Jan 6, 2011, the
company acquired some assets comprising the brand Dramamine in
Prestige Brands carries a Zacks Rank #2 (Buy). The latest
acquisition is a great strategic fit for the company. The two
companies have similar business models and a common culture
focusing on building brands, innovation and new products. It will
also help Prestige Brands in expanding its business in the Asia
Right now, companies like
) look well positioned with a Zacks Rank #1 (Strong Buy).
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