Back to top

Analyst Blog

Prestige Brands Holdings, Inc. (PBH - Snapshot Report) recently announced that it has acquired Australia-based Care Pharmaceuticals Pty Ltd. Effective from Jul 1, 2013, this privately held marketer and distributor of over-the-counter (OTC) healthcare products became a part of Prestige Brands. Financial details of the deal were not provided. Prestige Brands saw its share price moving up by 10.9% on the news.

This acquisition will strengthen Prestige Brands’ portfolio with Care Pharma’s principal brand Fess and other brands including Painstop, Rectogesic and Fab. Prestige Brands funded this acquisition through an existing credit facility and cash on hand.

We note that Prestige Brands is heavily into acquisitions. The company acquired 17 brands in 2012 and 6 brands in 2011 in the OTC Healthcare category, supplementing its existing OTC Healthcare brands.

On Jan 31, 2012, the company acquired 15 OTC healthcare brands, including related contracts, trademarks and inventory from GlaxoSmithKline plc (GSK - Analyst Report) and its affiliates. The other two brands, namely, Debrox and Gly-Oxide, were acquired on Mar 30, 2012.

On Nov 1, 2010, the company acquired Blacksmith Brands Holdings, Inc., which owned five brands, namely, Efferdent, Effergrip, PediaCare, Luden's and NasalCrom. On Jan 6, 2011, the company acquired some assets comprising the brand Dramamine in the US.

Prestige Brands carries a Zacks Rank #2 (Buy). The latest acquisition is a great strategic fit for the company. The two companies have similar business models and a common culture focusing on building brands, innovation and new products. It will also help Prestige Brands in expanding its business in the Asia Pacific region.

Right now, companies like Santarus, Inc. and Jazz Pharmaceuticals (JAZZ - Analyst Report) look well positioned with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%