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Prestige Consumer Healthcare to Acquire Breathe Right for $1.045 Billion

Prestige plans financing with cash plus a new term loan to support rapid deleveraging.

Overview

  • Prestige signed a definitive agreement to buy Breathe Right and several complementary consumer-health brands from Foundation Consumer Healthcare for about $900 million net of anticipated tax benefits.
  • Breathe Right will anchor the acquired portfolio, which generated roughly $200 million in revenue and $95 million in EBITDA for the twelve months ended December 31, 2025.
  • The portfolio also includes established names such as Dimetapp and Anbesol, expanding Prestige into sleep and better-breathing categories with international reach.
  • Management expects immediate accretion to gross and EBITDA margins and to EPS, valuing the deal at about 11.0x EBITDA, or roughly 9.5x net of estimated $150 million tax benefits.
  • Closing is targeted for the first half of fiscal 2027 pending Hart-Scott-Rodino clearance and other customary conditions, with pro-forma net leverage projected near 4.0x at close and a path below 3.0x by fiscal 2028.