Prestige Brand Holdings Inc

Prestige Consumer Healthcare exceeded sales and earnings expectations in its fiscal first quarter and raised its full-year adjusted diluted EPS guidance to $4.55-$4.65 and adjusted free cash flow guidance to $270 million or more. Total sales increased 6.5% to approximately $266 million, and the company delivered a record quarterly adjusted free cash flow of $83.7 million. The recently acquired Breathe Right portfolio is largely integrated and expected to contribute approximately $200 million in annual revenue, while the Breathe Right and Lacorium Health acquisitions together are projected to add more than 20% to the annualized revenue base. Management noted that the acquisitions are expected to add about 3 points of EPS growth for the year, though near-term EPS accretion from Breathe Right will be slightly below the annualized rate due to timing factors. The company also reported strong consumption growth in key categories such as GI and skin care, as well as robust double-digit growth in e-commerce.

Prestige Consumer Healthcare has completed the acquisition of the Breathe Right brand and certain other brands from Foundation Consumer Healthcare for $1.045 billion. The deal, which closed on June 15, makes Breathe Right the company's largest brand with expected 2025 revenue of about $200 million and core profit of $95 million. The acquisition adds drug-free nasal strips to the portfolio and includes established brands such as Dimetapp, a children's cough and cold relief brand. While primarily distributed in the US, Breathe Right holds a leading category position with international growth opportunities. Prestige Consumer Healthcare is the largest independent provider of over-the-counter healthcare products in North America.

Prestige Consumer Healthcare's subsidiary, Prestige Brands, plans to offer up to $400 million of new senior notes due 2034 in a private offering. The company intends to use the net proceeds, together with cash on hand, to redeem all $400 million of its outstanding 5.125% Senior Notes due 2028 and to pay related fees and expenses. Prestige Brands expects to give notice of its intention to redeem the 2028 notes at a redemption price equal to 100.0% of the principal amount, plus accrued and unpaid interest to the redemption date.