Privately-held Randob Labs on Thursday acquired the Balmex brand of skin protectants from Moberg Pharma as part of a $4.3 million deal.
"We are excited to add the Balmex brand to our OTC lineup at Randob, which already includes the core and expanding Dormin sleep aid and Sting-Kill anti-itch brands," Jim Creagan, president of the Cornwall, N.Y.-based supplier, said. "Balmex, which will celebrate 65 years in 2018, has had a loyal following for generations of mothers because it provides the gentle, yet effective care that all mothers want for their babies."
Randob Labs has built a reputation around taking heritage brands and making them relevant to today's marketplace. "We plan to increase the Balmex brand's relevance, distribution and sales by tapping into the channels and conversations that moms and those who influence them are having online, similar to the strategies we are using to grow our Dormin and Sting-Kill brands," Creagan said. "In addition to baby care, there are also expansion opportunities in the adult market as boomers age and have specific skincare needs."
Creagan noted that the 3.3% growth in the diaper rash category is twice that of overall OTC market growth (1.8%). In addition to the approxiate 4 million births every year, more than 15% of the U.S. population is over the age of 70.
The transaction, expected to close in April, includes four baby care SKUs and two adult care SKUs. The brand was originally acquired from Chattem (now Sanofi Consumer Healthcare) in April 2015, Moberg Pharma reported.