The transaction is anticipated to close in the first half of fiscal 2027, subject to customary closing conditions and regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act. Prestige expects the acquisition to be accretive to its earnings, gross margins, and EBITDA margins, thereby supporting its long-term financial growth strategy. The company plans to finance the acquisition using cash on hand and a new term loan credit facility, with an expected pro forma net leverage of approximately 4.0x at closing.
Ron Lombardi, Chairman and CEO of Prestige, emphasized the strategic fit of Breathe Right within the company's existing portfolio, stating that the brand's strong consumer awareness and market leadership position will provide a solid foundation for sustained growth. The acquisition aligns with Prestige's disciplined M&A framework and is expected to drive incremental free cash flow, facilitating rapid deleveraging towards the company's long-term leverage target.
In addition to Breathe Right, the acquired portfolio includes other established brands such as Dimetapp and Anbesol, further reinforcing Prestige's position in the consumer healthcare market. The company aims to leverage its existing distribution channels and supplier relationships to maximize the potential of the newly acquired brands, enhancing its overall market presence and operational execution.
