Prestige Consumer Healthcare Inc. has announced a definitive agreement to acquire the Breathe Right® brand and a portfolio of other brands from Foundation Consumer Healthcare for $1.045 billion. This strategic acquisition is expected to significantly enhance Prestige’s market presence in the consumer healthcare sector, particularly in the growing sleep and better-breathing categories.
The acquisition of Breathe Right®, a leading and iconic brand synonymous with the nasal strip category, marks an expansion into a new area for Prestige. The brand addresses various consumer needs, including sleep wellness, snoring, athletic performance, and allergy relief. The acquired portfolio also includes other established brands such as Dimetapp®, recognized as the number one most trusted children’s cough and cold relief brand by pharmacists.
Ron Lombardi, Chairman, President, and CEO of Prestige Consumer Healthcare, stated that the acquisition aligns with the company’s M&A framework and will enhance its portfolio long-term. He highlighted Breathe Right’s strong consumer awareness and its position in attractive, growing markets, drawing parallels to Prestige’s successful strategy with brands like Dramamine®.
The acquired portfolio generated approximately $200 million in revenue and $95 million in EBITDA for the twelve months ending December 31, 2025. Breathe Right® constitutes about two-thirds of this revenue and profitability. The transaction is valued at 11.0x EBITDA, or approximately 9.5x EBITDA net of anticipated tax benefits estimated at $150 million.
Prestige anticipates the acquisition to be immediately accretive to its gross and EBITDA margins, as well as to earnings per share (EPS). The company expects the deal to drive incremental free cash flow, enabling rapid deleveraging towards its long-term leverage target. Pro-forma bank-defined net leverage is projected to be around 4.0x at closing, with a clear path to return below 3.0x by fiscal year 2028.
The transaction is expected to close in the first half of fiscal year 2027, subject to customary closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act. Prestige plans to finance the acquisition using existing cash reserves and a new Term Loan credit facility.