DOW JONES NEWSWIRES
Prestige Brands Holdings Inc. (PBH) agreed to buy the Dramamine
brand of motion-sickness medicine from Johnson & Johnson (JNJ)
unit McNeil-PPC Inc. for $76 million cash.
The deal follows its acquisition of fellow over-the-counter
company Blacksmith Brands in a $190 million deal last month.
Prestige said Dramamine is the country's top over-the-counter,
or OTC, treatment for motion sickness, with an estimated market
share of 32%. The company, which is focusing more on its OTC
brands, sees the deal closing by the end of next month.
The company--known for brands including Chloraseptic, Little
Remedies and Allergen Block--expects to "quickly and smoothly
integrate Dramamine and drive growth through enhanced brand
support," according to Chief Executive Matthew Mannelly.
Last month, the company reported its earnings grew more than
expected despite lower revenue from continuing operations, as
Prestige improved margins and spent less on advertising.
It will be paying for the deal with cash on hand and bank and
bond financing left over from the Blacksmith and other
takeovers.
McNeil-PPC has been on the radar recently for numerous recalls
of such over-the-counter medicines and children's Benadryl and
Tylenol because of quality control problems at a plant.
Shares in Prestige closed up 1.7% at $11.77 Thursday and weren't
active after hours. The stock has climbed by half so far this year,
better than the wider market.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com