Prestige Brands to acquire C.B. Fleet for $825 million

1/3/2017

TARRYTOWN, N.Y. — Prestige Brands Holdings will acquire C.B. Fleet for $825 million in cash. C.B. Fleet is known for its Summer’s Eve feminine care product, which represents approximately 65 percent of its portfolio, as well the Fleet brand, which holds a No. 1 market share in both enemas and glycerin suppositories, and Pedia-Lax, which holds a No. 1 market share in pediatric laxatives.


According to Prestige Brands, the transaction will add leading brands to the company’s women’s health, gastrointestinal and pediatric care categories, which had revenues of approximately $205 million over the trailing 12 months ended September.


“Based on Fleet’s long history of connecting with consumers, new product expansions, and leading market-share positions we believe the company is well positioned for long-term growth and fits into our well-established brand building platform. The acquisition of Fleet further enhances our women’s healthcare platform, currently anchored by Monistat, with the addition of Summer’s Eve. Upon closing, Summer’s Eve will also be our largest brand with over $125 million in sales. In addition, the transaction adds the leading brands of Fleet and Pedia-Lax to our gastrointestinal category, expanding the brands we offer in this category,” said Prestige Brands CEO Ron Lombardi. “The acquisition is also a key step in aligning our portfolio with our long-term stated goal of 2%-3% organic growth. We believe the addition of Fleet's manufacturing facility also provides strategic benefits and cost synergies as we look to expand manufacturing to include current Prestige products. Over time, we also expect to take advantage of Fleet research and development resources to enhance our new product development capabilities.”


The acquisition is expected to result in pro forma revenues of $1 billion for Prestige Brands in 2018.


“This acquisition is consistent with our proven merger and acquisition strategy that focuses on acquiring brands with long term brand building opportunities, including new products and innovations and quickly integrating them into the Prestige business, resulting in meaningful synergies and cost savings,” said Lombardi. “The expected integration and transition is consistent with our past acquisitions and our demonstrated core competency of acquiring, integrating and growing business through investment and brand support.”


Tarrytown-based Prestige Brands is known for the Monistat women's health products, BC and Goody's pain relievers, Clear Eyes eye care products, DenTek specialty oral care products, Dramamine motion sickness treatments, Chloraseptic sore throat treatments, Compound W wart treatments, Little Remedies pediatric over-the-counter products, The Doctor's NightGuard dental protector, Efferdent denture care products, Luden's throat drops, Beano gas prevention, Debrox earwax remover, Gaviscon antacid in Canada, and Hydralyte rehydration products and the Fess line of nasal and sinus care products in Australia.


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