National Northeast

Prestige Brands Holdings to Acquire 17 Consumer OTC Healthcare Brands

New York-based Prestige Brands Holdings Inc. has signed a definitive agreement with GSK to acquire 17 over-the-counter (OTC) pharmaceutical brands sold in North America for a total of $660 million in cash. The transactions are expected to be completed in the first half of calendar year 2012.

According to Prestige CEO Matthew M. Mannelly: “The signing of these agreements with GSK is a transformational event for Prestige Brands. It fulfills our commitment to create shareholder value by acquiring well-known OTC brands with strong consumer franchises and applying our marketing and sales expertise to them. These transactions, upon completion, will be the largest acquisitions of assets in the company’s history, following on the heels of our recent acquisitions of five brands from Blacksmith Brands and Dramamine from Johnson & Johnson over the past year. We expect that, upon completion, the transactions will give our company a strengthened portfolio with total OTC revenues of approximately $500 million, as well as platforms to compete in two new categories: adult aspirin-based analgesics and gastrointestinal. We believe the acquisitions are consistent with our strategic direction, fit with our fixed asset-light outsourced model, provide opportunities for certain cost savings, are financially attractive to shareholders, and will result in annual corporate revenues of approximately $600 million with an OTC business segment representing 85 percent of revenues and 90 percent of profits.”

Among the brands the company agreed to acquire are the BC, Goody’s and Ecotrin brands of pain relievers; Beano, Gaviscon, Phazyme, Tagamet and Fiber Choice GI brands; and the Sominex sleep aid brand.


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Kristen Cloud

A former newspaper editor and publisher, she once enjoyed leisurely perusing the grocery store aisles but, since having a baby in 2016, she is now an enthusiastic click-and-collect shopper.

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