Core Viewpoint - Prestige Consumer Healthcare Inc. has announced a definitive agreement to acquire the Breathe Right brand and other brands from Foundation Consumer Healthcare for $1.045 billion, which is approximately $900 million net of anticipated tax benefits valued at $150 million [1][6]. Group 1: Acquisition Details - The acquisition includes the Breathe Right brand, which is a leading brand in the nasal strip category, and represents an expansion into a new category for Prestige [2][3]. - The acquired portfolio also includes established brands like Dimetapp, which is the most trusted children's cough and cold relief brand according to pharmacists [2]. - The transaction is expected to close in the first half of fiscal 2027, subject to certain closing conditions [6][7]. Group 2: Financial Highlights - The acquired brands generated approximately $200 million in revenue and $95 million in EBITDA over the twelve months ended December 31, 2025 [7][8]. - Breathe Right accounts for about two-thirds of the acquired portfolio's revenue and profitability, making it the largest brand in Prestige's portfolio [8]. - The acquisition is expected to be immediately accretive to Prestige's gross and EBITDA margins, with an attractive valuation of 11.0x EBITDA, or approximately 9.5x EBITDA net of anticipated tax benefits [8]. Group 3: Strategic Fit - The acquisition aligns with Prestige's long-term organic growth strategy, reinforcing its target of 2-3% organic sales growth [8]. - The business model of the acquired brands is asset-light, with distribution channels and supplier relationships that align well with Prestige's current operations [4]. - The acquisition is anticipated to drive incremental free cash flow, enabling rapid deleveraging towards the company's long-term leverage target [4].