Prestige Consumer Healthcare has entered into a definitive agreement to acquire the Breathe Right brand and a portfolio of related products from Foundation Consumer Healthcare for $1.045 billion, or approximately $900 million net of anticipated tax benefits. The transaction, announced March 20, includes a group of established over-the-counter brands with combined revenue of about $200 million and EBITDA of roughly $95 million for the twelve months ended December 31, 2025. The deal is expected to close in the first half of Prestige’s fiscal 2027, subject to customary closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act.
The acquisition will be financed through a combination of cash on hand and a new term loan credit facility, with Prestige projecting pro forma net leverage of approximately 4.0x at closing and a path to reduce leverage below 3.0x by fiscal 2028. The company said the transaction is expected to be accretive to gross and EBITDA margins as well as earnings per share, supported by the portfolio’s margin profile and cash flow generation. Citi is serving as financial advisor to Prestige, with Alston & Bird acting as legal counsel, while Canaccord Genuity and Skadden, Arps, Slate, Meagher & Flom are advising Foundation Consumer Healthcare.
