Swedish company Moberg Pharma has completed the previously announced acquisition of over-the-counter, US brand anaesthetic spray DermoPlast from Prestige Brands for $47.6m.
The anaesthetic spray DermoPlast is used externally for relief of pain and itching from skin chaps and skin injuries and would be sold through Moberg Pharma’s sales channels in the US.
It is planned to be sold through chain drugstores such as CVS, Walgreens and Rite Aid and at retailers such as Walmart and Target, as well as directly to hospitals.
Moberg Pharma CEO Peter Wolpert said: “The acquisition brings increased economies of scale and complements our portfolio with a strong and profitable dermatology brand.
“We are very pleased with this transaction, which is expected to contribute positively to both our sales and profitability and thereby to our long-term financial target to deliver profitable growth and an EBITDA margin of 25%.”
Moberg Pharma used a combination of available cash resources along with recently completed financing to finance the transaction, which was announced last month.
DermoPlast is to be included among Moberg Pharma’s strategic brands and expected to contribute positively to the company’s profit and cash flow per share.
The company acquired three US over-the-counter brands New Skin, Fiber Choice and PediaCare from Prestige in June last year.
Subsequently, it secured an exclusive right to also acquire DermoPlast from Prestige for an option fee of $1.25m that provides a one-time right to perform an evaluation of the brand on an exclusive basis.