Prestige Brands to buy Insight Pharmaceuticals for $750 mn

Prestige Brands Holdings Inc, a US marketer and distributor of feminine care and other over-the-counter (OTC) healthcare products, yesterday struck a deal to buy Insight Pharmaceuticals Corp for $750 million.

The deal comes a week after Prestige agreed to buy Hydralyte, an over-the-counter (OTC) oral rehydration brand, from Australia's Hydration Pharmaceuticals Trust, for an undisclosed sum.

As part of the transaction, New York-based Prestige will acquire tax attributes with a present value of approximately $100 million, which will take the effective purchase price to around $650 million.

Founded in 1996, Pennsylvania-based Insight, whose investors include private equity firm Swander Pace Capital and the private investment arm of Ontario Teachers' Pension Plan, specialises in women's health and personal care products.

The deal will extend Prestige's portfolio of OTC brands to include Insight's leading feminine care portfolio, including Monistat, the No1 brand in OTC yeast infection treatment.

Insight's portfolio also includes EPT home pregnancy test products and other feminine care brands.

Prestige markets and distributes brand name over-the-counter and household cleaning products throughout the US, Canada, Australia, and in select international markets.

It core brands are in sore throat treatments, eye care products, wart treatments, dental protection and pediatric.

''The acquisition of Insight Pharmaceuticals will add the attractive new feminine care platform to the Prestige portfolio. The platform is anchored by Monistat, the #1 brand in its category and the brand recommended most by doctors. Monistat will become the Company's largest and its first $100 million brand,'' said, Matthew Mannelly, CEO of Prestige.

''The acquisition is expected to boost Prestige's annual revenues to approximately $800 million, bringing us closer to our stated goal of becoming a billion dollar OTC products company,'' he added.