High Ridge Gets Sliced Up

Following a sales process and auction conducted under Section 363 of the US Bankruptcy Code, an affiliate of Perrigo Company plc will acquire the High Ridge Brands’ oral care business and an affiliate of Tengram Capital Partners will acquire the company's hair care and skin cleansing business, which includes White Rain, VO5, Thicker Fuller Hair, Zest and Coast among others. 

Under the terms of the agreement, the consideration includes a cash payment to High Ridge Brands of $120.5 million and the assumption by the buyers of working capital and substantially all go-forward liabilities of the businesses, as well as certain cure costs associated with the Company's existing business arrangements. 

“We are pleased to conclude a successful and competitive auction process,” said Patricia Lopez, High Ridge Brands' CEO and president. “This outcome maximizes the value of our strong brands and supports the interests of all of our stakeholders. The buyers bring significant resources and experience and have long track records helping acquired brands build on their strong foundations and continue to grow. The transaction will be seamless for both our customers and consumers. As we finalize the sale, we remain focused on continuing the on-time, in-full deliveries of all our hair care, skin cleansing and oral product lines.” 

Perrigo, based Dublin, contends the new business assets from High Ridge—Firefly, Reach and Dr. Fresh—are expected to contribute more than $100 million in net sales to its revenue base.

“The strategic acquisition of these oral care assets highlights the tremendous value of the Ranir platform, and it underscores that there are numerous bolt-on opportunities that can advance Perrigo as a global self-care leader,” said Murray S. Kessler, Perrigo president and chief executive officer. “It also demonstrates that Perrigo will remain disciplined and mindful of maximizing shareholder value as it proceeds with its portfolio reconfiguration plans.”

At closing, High Ridge Brands and the buyers will enter into a mutual Transition Services Agreement that is expected to span at least 12 months. 

The transaction is subject to approval by the U.S. Bankruptcy Court for the District of Delaware and certain other closing conditions.

A hearing to seek court approval for the transaction is scheduled for Feb. 26, 2020. The transaction is expected to close in the first quarter of 2020.