Prestige to buy Insight Pharma for about $750M
Medicine distributer Prestige Brands will spend about $750 million to buy the EPT home pregnancy test maker Insight Pharmaceuticals.
The Tarrytown, N.Y., company said Friday that the deal for the privately held company will expand its over-the-counter product portfolio to include products like the yeast infection treatment Monistat and other feminine care products.
Prestige also is acquiring tax attributes of about $100 million, which would lower the purchase price to $650 million.
Prestige Brands Holdings Inc. will use cash, its revolving credit agreement and an add-on it to its existing term loan to pay for the deal.
Prestige sells household cleaning products and other over-the-counter treatments like the sore throat remedy Chloraseptic and PediaCare.
Earlier this month, Prestige said that it would buy Hyrdralyte, an over-the-counter treatment for dehydration sold in Australia and New Zealand.
In 2012, it paid $660 million to buy 17 over-the-counter product brands from British drugmaker GlaxoSmithKline. Those include Goody's pain relievers and Sominex sleep aids.
Prestige shares closed at $27.31 on Thursday and have tumbled 24 percent so far this year since closing 2013 at $35.80.