IRVINGTON, Ky. (AP) -- Consumer products company Prestige Brands Holdings Inc. said Thursday it is buying Johnson & Johnson's U.S. Dramamine business for $76 million in cash in a move to expand its over-the-counter brands.
Dramamine is an over-the-counter medication for motion sickness sold by J&J's McNeil PPC unit. Prestige said the product has estimated market share in the U.S. of 32 percent.
It is the second large acquisition for the company in the past few months. In September, Prestige agreed to pay $190 million for Blacksmith Brands Holdings Inc., whose brands include Luden's throat drops, PediaCare children's products, Efferdent denture cleansers, Effergrip denture cream and NasalCrom allergy medication. Prestige already owns consumer products such as Clear Eyes solution and Chloraseptic sore throat relievers.
Over the counter products will now make up more than 75 percent of its revenue. The deal is expected to close by the end of January and will add to profit in 2012, the company said. Prestige expects to use cash on hand as well as bank and bond financing to complete the purchase.
Shares of Prestige Brands rose 20 cents to close at $11.77.
Dramamine is an over-the-counter medication for motion sickness sold by J&J's McNeil PPC unit. Prestige said the product has estimated market share in the U.S. of 32 percent.
It is the second large acquisition for the company in the past few months. In September, Prestige agreed to pay $190 million for Blacksmith Brands Holdings Inc., whose brands include Luden's throat drops, PediaCare children's products, Efferdent denture cleansers, Effergrip denture cream and NasalCrom allergy medication. Prestige already owns consumer products such as Clear Eyes solution and Chloraseptic sore throat relievers.
Over the counter products will now make up more than 75 percent of its revenue. The deal is expected to close by the end of January and will add to profit in 2012, the company said. Prestige expects to use cash on hand as well as bank and bond financing to complete the purchase.
Shares of Prestige Brands rose 20 cents to close at $11.77.
