06.30.16
Swedish firm Moberg Pharma AB has signed an agreement to acquire three properties from Tarrytown, NY-based Prestige Brands, Inc., including liquid bandage brand New Skin. The $40 million deal also includes Prestige Brand's Fiber Choice line and PediaCare OTC remedies.
In the latest 12 months ending March 31, 2016, the net sales of these brands was approximately $24.4 million, according to Moberg.
According to Moberg, New Skin is the “main profitability contributor” in the acquired portfolio and is well aligned with its strategic focus on topical dermatology. New Skin is the No. 1 OTC liquid bandage brand in the US. The product is an antiseptic that kills germs and dries rapidly to form a clear protective cover.
“This acquisition is in line with our strategy to add critical mass to Moberg’s US operations as well as a leading topical brand to our core dermatology franchise,” said Peter Wolpert, CEO of Moberg Pharma AB.
“We see excellent opportunities to build on the brand equity of New Skin. This a market leading brand with exciting prospects for growth. We will leverage our Innovation Engine to further strengthen the future value proposition of this brand as well as Fiber Choice and PediaCare to consumers and retailers”, said Jeff Vernimb, GM of Moberg Pharma North America.
The acquired brands will be sold through Moberg’s current OTC channel in the US, primarily in chain drugstores, such as CVS, Walgreens and Rite Aid and in mass retailers, such as Walmart and Target.
Based on Moberg Pharma’s cost structure and accounting principles, the purchase price corresponds to approximately 8 times expected EBITDA for the three acquired brands for the 12 months following the closing of the transaction.
The transaction is expected to be completed in July 2016.
In the latest 12 months ending March 31, 2016, the net sales of these brands was approximately $24.4 million, according to Moberg.
According to Moberg, New Skin is the “main profitability contributor” in the acquired portfolio and is well aligned with its strategic focus on topical dermatology. New Skin is the No. 1 OTC liquid bandage brand in the US. The product is an antiseptic that kills germs and dries rapidly to form a clear protective cover.
“This acquisition is in line with our strategy to add critical mass to Moberg’s US operations as well as a leading topical brand to our core dermatology franchise,” said Peter Wolpert, CEO of Moberg Pharma AB.
“We see excellent opportunities to build on the brand equity of New Skin. This a market leading brand with exciting prospects for growth. We will leverage our Innovation Engine to further strengthen the future value proposition of this brand as well as Fiber Choice and PediaCare to consumers and retailers”, said Jeff Vernimb, GM of Moberg Pharma North America.
The acquired brands will be sold through Moberg’s current OTC channel in the US, primarily in chain drugstores, such as CVS, Walgreens and Rite Aid and in mass retailers, such as Walmart and Target.
Based on Moberg Pharma’s cost structure and accounting principles, the purchase price corresponds to approximately 8 times expected EBITDA for the three acquired brands for the 12 months following the closing of the transaction.
The transaction is expected to be completed in July 2016.