TARRYTOWN, NY — Prestige Consumer Healthcare Inc. is acquiring a portfolio of over-the-counter consumer brands from specialty pharmaceutical company Akorn Operating Co. LLC for $230 million in cash.
The portfolio features the TheraTears eyecare brand, which represents about 80 percent of portfolio revenues, as well as four other brands in the VMS and and cough and cold categories. TheraTears is a doctor-created brand with heritage dating to the mid-1970s when ophthalmologist Dr. Jeffrey Gilbard began research into treatment and relief of dry eyes.
“Prestige has a long and successful history in the eye care space highlighted by the iconic Clear Eyes brand,” said Ron Lombardi, chairman and CEO of Prestige Consumer Healthcare. “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.”
The transaction is expected to close during the fiscal second quarter, subject to customary closing conditions
The acquisition is estimated to add annual revenue, earnings per share and operating cash flow of about $60 million, $0.10 and $13 million, respectively.