Prestige Consumer Healthcare Acquires Breathe Right Brand for $1.045B
Prestige Consumer Healthcare has entered into a definitive agreement to acquire the Breathe Right brand and certain other brands from Foundation Consumer Healthcare for $1.045B, or approximately $900M net of anticipated tax benefits valued at $150M. The company said, "Breathe Right, created in the 1990s, is an iconic #1 brand synonymous with the nasal strip category and represents expansion into a new category for Prestige. Its drug-free nasal strips serve multiple consumer "better breathing" needs, such as sleep wellness, snoring, athletic performance, allergy relief, congestion relief and more. The brand is widely distributed throughout the United States, where it holds the leading position in the category, and is sold internationally, mainly concentrated in Europe, with further growth opportunity. The acquired portfolio also includes other established brands with loyal consumer followings, such as Dimetapp, the #1 most trusted children's cough and cold relief brand by pharmacists." Financial Highlights: Attractive financial profile, with approximately $200M of revenue and approximately $95M of EBITDA over the twelve months ended December 31, 2025; Breathe Right represents approximately two-thirds of the acquired portfolio's revenue and profitability and will be the largest brand in Prestige's portfolio; Remaining portfolio is highlighted by Dimetapp and Anbesol, two long-standing brands in the children's cold relief and oral pain relief categories, respectively; Reinforces Prestige's long-term organic sales growth target of 2-3%; Immediately accretive to Prestige's gross and EBITDA margins; Attractive valuation of 11.0x EBITDA, or approximately 9.5x EBITDA net of anticipated tax benefits, reflecting the benefit of the $150M estimated present value of future tax savings; Expected pro-forma bank-defined net leverage of approximately 4.0x at closing, and a clear path to return to below 3.0x net leverage in fiscal 2028 driven by strong free cash flow generation. The Company plans to finance the acquisition with cash on hand and a new Term Loan credit facility. The transaction is expected to close during the first half fiscal 2027, subject to certain closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976.
