Beauty Packaging Staff02.24.20
High Ridge Brands has announced an affiliate of Perrigo Company will acquire its oral care business and an affiliate of Tengram Capital Partners will acquire its hair care and skin cleansing business.
Under the terms of the agreement, the consideration includes a cash payment to High Ridge Brands of $120.5 million and the assumption by the buyers of working capital and substantially all go-forward liabilities of the businesses, as well as certain cure costs associated with existing business arrangements.
High Ridge Brands is headquartered in Stamford, Connecticut, and is one of the largest independent branded personal care companies in the United States by unit volume. Brands include Zest, Alberto VO5, REACH, Dr. Fresh, Coast, White Rain, LA Looks, Rave, Zero Frizz, and more.
Patricia Lopez, High Ridge Brands' CEO and president, comments, "This outcome maximizes the value of our strong brands and supports the interests of all of our stakeholders. The buyers bring significant resources and experience and have long track records helping acquired brands build on their strong foundations and continue to grow."
Lopez adds, "The transaction will be seamless for both our customers and consumers. As we finalize the sale, we remain focused on continuing the on-time, in-full deliveries of all our hair care, skin cleansing and oral product lines."
High Ridge Brands and the buyers will enter into a mutual Transition Services Agreement (TSA) in order to provide for a seamless transfer of the oral, skin and hair businesses. The TSA is expected to span at least 12 months, and is subject to approval. A hearing to seek court approval for the transaction is scheduled for Wednesday, February 26, 2020. The transaction is expected to close in the first quarter of 2020.
Debevoise & Plimpton LLP and Young Conaway are serving as the Company's legal counsel. Ankura Consulting Group is serving as the Company's restructuring advisor. PJT Partners is serving as financial advisor to the Company.
