Prestige Consumer Healthcare has entered into a definitive agreement to acquire a portfolio of over-the-counter consumer brands from specialty pharmaceutical company Akorn for $230 million in cash.
The acquired consumer product portfolio features the TheraTears eye care brand, which represents approximately 80% of portfolio revenues, as well as four other brands in the VMS and Cough & Cold categories.
TheraTears is a doctor-created brand with heritage dating back to the mid-1970s when ophthalmologist Dr. Jeffrey Gilbard began research into treatment and relief of dry eyes.
The brand has a strong and loyal user base for its products and participates in the fast-growing OTC “dry eye” segment.
“The acquisition of the proven TheraTears brand will further enhance this leading eye care franchise with additional long-term growth opportunities in the fast-growing ‘dry eye’ segment,” said Ron Lombardi, Chairman and CEO of Prestige Consumer Healthcare.
The TheraTears brand is well positioned with the mild and episodic dry eye consumer with a long track record of steady market share gains and revenue growth above the category.
Furthermore, the portfolio complements Prestige’s operational model with outsourced manufacturing and similar distribution characteristics to the Company’s existing business.
The brands are expected to be able to leverage existing infrastructure resulting in a timely integration. The Akorn portfolio has a solid financial profile of sales growth and margins consistent to Prestige’s long-term growth targets and financial profile.