Prestige Brands To Acquire Insight Pharma In $750 Mln Deal - Quick Facts

(RTTNews) - Prestige Brands Holdings, Inc.(PBH) said it has entered into a definitive agreement to acquire Insight Pharmaceuticals Corp., a marketer and distributor of feminine care and other over-the-counter healthcare products, for $750 million in cash.

As part of the transaction, Prestige will acquire tax attributes with a present value of around $100 million, which results in an effective purchase price of about $650 million.

This transaction, combined with the Hydralyte transaction announced on April 15, is expected to result in pro forma revenues and adjusted Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA of around $800 million and $300 million, respectively, for the company in fiscal 2015.

The transaction will extend Prestige's portfolio of iconic OTC brands to include Insight's leading feminine care platform anchored by Monistat, the #1 brand in OTC yeast infection treatment.

The acquisition will give Prestige a leading platform in feminine care in the U.S. and Canada, while adding other OTC brands to its cough/cold, pain relief, eye and ear, and dermatological platforms.

The transaction is expected to be immediately accretive to the company's earnings per share and free cash flow per share, exclusive of transaction, integration and purchase accounting items.

The company expects to close this transaction during the first half of this fiscal year.