Prestige Brands To Divest Three Brands To Moberg Pharma AB

Prestige Brands Holdings, Inc. (NYSE: PBH) revealed that it reached an agreement with Moberg Pharma AB (OMX: MOB) for the sale of three of its non-core over-the-counter healthcare products for $40.0 million in cash.

Prestige Brands said the transaction included New Skin, PediaCare and Fiber Choice. According to the company, these brands represented approximately $25 million in revenues or 3 percent of its sales in fiscal 2016.

The company indicated that these divestitures would allow it to move closer to its stated objective of having a portfolio consisting of 85 percent of its revenue from "invest for growth" brands and 15 percent in "manage for cash" brands to help support long-term organic growth.

Prestige Brands said it intends to use the divestiture proceeds to pay down debt and accelerate de-leveraging. The company expects the transaction to close in the fiscal second quarter that commences on July 1.

The stock traded 0.71 percent down on Thursday.

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