Prestige divesting shampoo brands
This article was originally published in The Rose Sheet
Executive Summary
Prestige Brands Holdings announces sale of three shampoo brands - Prell, Denorex Dandruff Shampoo andZincon Dandruff Shampoo - to Ultimark Products. The brands, which make up 2%-3% of the firm's annual sales, sold for $8 mil., to be followed by an additional payment of $1 mil. on Oct. 28, 2010, Prestige says Oct. 29. Irvington, N.Y.-based firm says it will use the proceeds to pay down debt. "The successful sale of these businesses allows us to increase focus on our two larger segments - over-the-counter healthcare and household cleaning products - to enhance shareholder value," says President and CEO Matthew Mannelly. Prestige board members resign: Prestige board members Peter Mann and Vincent Hemmer have resigned, the firm reports Oct. 27. Mann, the company's founder and a former CEO and Chairman, is moving on to pursue a new business opportunity, while Hemmer, of GTCR Golder Rauner, a private-equity owner of Prestige stock, is resigning after his firm's "significant reduction in holdings in Prestige Brands." Prestige's appointed Matthew Mannelly CEO in September after the company's former leader, Mark Pettie, stepped down partly due to "divergent views" with board members (1"The Rose Sheet" Sept. 14, 2009)