Prestige Brands to acquire C.B. Fleet Company for $825M
Prestige Brands has entered into a definitive agreement to acquire C.B. Fleet Company, a manufacturer, marketer, and distributor of feminine care and other over-the-counter healthcare products, for $825M in cash. The transaction is expected to result in pro forma revenues of approximately $1.0B for the company in FY18. The transaction will add brands to the company's Women's Health, Gastrointestinal and Pediatric Care categories with revenues of approximately $205M over the trailing twelve months ended September. Over time, the company expects to leverage the facility by expanding production to include current Prestige products and other initiatives. Upon closing, the transaction is expected to be immediately accretive to EPS and cash flow from operations, exclusive of transaction, integration and purchase accounting items. The company anticipates closing on this transaction by the end of 4Q17. Dependent on the timing of the closing, Prestige anticipates credit agreement defined pro forma Debt-to-EBITDA leverage at closing of approximately 5.8x, with an expectation to reduce its Debt-to-EBITDA leverage to approximately 5.0x by the end of FY18. The anticipated FY18 pro forma Adjusted EBITDA implies a purchase price multiple of approximately 11x. Prestige has secured a financing commitment for the full amount needed to consummate the transaction and may choose to fund a portion of the transaction with excess cash on hand, bank debt, bonds and/or common equity.