Prestige Brands turns down Genomma Lab’s buyout offer
IRVINGTON, N.Y. — Prestige Brands has rejected an unsolicited proposal from Genomma Lab, which seeks to acquire the over-the-counter and household cleaning products maker for $16.60 per share in cash, calling the deal inadequate, opportunistic and highly conditional.
As previously reported, Prestige Brands confirmed the company’s receipt of a nonbinding letter from Genomma Lab in late February and said it would take the offer under advisement. This week, however, Prestige Brands said its board of directors — after carefully reviewing the proposal with its independent financial and legal advisers — found several reasons not to move forward with the transaction, including:
"The proposal reflects only a 23% premium to Prestige Brands’ closing price of $13.50 per share on the last trading day prior to the public announcement … the implied EBITDA multiple is meaningfully lower than comparable transactions and well below the intrinsic value of the company";
"Prestige Brands recently completed its third and largest acquisition of OTC brands in the last 15 months, barely three weeks before Genomma Lab went public with its proposal";
"[A] a credible acquisition proposal must deliver both compelling value and certainty by including, among other things, evidence of financial resources sufficient to complete a transaction in a timely fashion. In addition, any proposal must contain sufficient detail to demonstrate that it provides market-standard provisions that assure certainty of completion. The Genomma Lab proposal does not include debt commitments and is also conditioned on the approval of its shareholders, due diligence and other unspecified matters."
"Genomma Lab did not negotiate with us before making its highly conditional proposal, which was opportunistically timed before our stock price fully reflected the recent completion of the purchase of brands from GlaxoSmithKline and other initiatives," Prestige Brands president and CEO Matthew Mannelly said. "We are committed to maximizing stockholder value, and would be open to compelling, fully financed offers that provide certainty of closing. Should Genomma Lab make such an offer, there would be a basis to engage with them."
Ascent Consumer to spice up nasal saline sets with dry salt inhaler launch
LAS VEGAS — Melville, N.Y.-based Ascent Consumer Products late last month introduced a new delivery form to the nasal saline category — a dry salt inhaler branded InHalo — as a new solution to help break up mucous and promote nasal and bronchial drainage at the ECRM Cough & Cold and Allergy EPPS conference held here.
The two dry inhalers, one for oral and another for nasal delivery, are filled with natural salt crystals. Inhaling through the device delivers saline particles either to the lungs or the sinuses, respectively. The inhalers will sell for a suggested $19.99; replacement salt crystal cartridge will retail at a suggested $8.99.
The benefits of dry salt inhalers were featured in January on the syndicated "Dr. Oz" television program. Current dry salt inhalers, sold primarily online or through specialty health stores (natural food), retail between $35 and $50, according to the company.
CHPA: Economy, social media changing how America shops ‘health’
BONITA SPRINGS, Fla. — In excess of $102 billion. That’s the value over-the-counter medicine delivers to the U.S. healthcare system, Consumer Healthcare Products Association leaders shared with attendees of the CHPA Annual Executive Conference held here Friday morning.
Fully realizing that value and even enhancing that value is now the focus of the association — whether it’s through consumer education, industry advocacy before Congress or through innovation — that’s the direction the association is pushing toward moving forward. "The pace and extent of change and our challenge as business leaders to build teams that embrace change drove us to this year’s theme ‘Game Change,’" Colin Mackenzie, this year’s CHPA AEC chair, and president of North America for GlaxoSmithKline Consumer Healthcare. "It is important that we understand the landscape of that change so we make this a competitive advantage for our industry."
Paul Sturman, CHPA chairman and president and general manager of Pfizer Consumer Healthcare, helped frame that landscape in light of evolving mobile shopping technology and how that is continually influencing the decision pathway for the consumer.
According to Sturman, 40% of smartphone and tablet users have downloaded a health-and-wellness app. And almost 90% of consumers take their doctor recommendation to their social sites — Facebook, for example — for a second opinion.
Today’s economy also continues to have an impact on the course of health care.
"People are doing a lot more with a lot less," Sturman said, noting that economic concerns are still driving the consumer in search of less expensive, more efficient healthcare solutions. "Today we package products. Arguably down the road, we’ll package health," he said. "Today’s point of purchase will [evolve into] the point of care in the future."
And Sturman noted that retail pharmacy will continue to expand its retail healthcare offerings and become points of care for a number of disease states — diabetes, high blood pressure, hair loss — if those pharmacy operations aren’t doing so already. "The retail setting is going to offer more opportunities than just purchase," he said.