Prestige Buys Breathe Right, Boosts Portfolio

(PBH) announced an agreement to acquire Breathe Right and other brands from Foundation Consumer Healthcare for $1.045 billion, or $900 million net of $150 million in anticipated tax benefits, expanding its portfolio with category-leading consumer health solutions. The acquired portfolio generated approximately $200 million in revenue and $95 million in EBITDA over the twelve months ended December 31, 2025.

Breathe Right, the #1 nasal strip brand, constitutes about two-thirds of this revenue and profitability, becoming Prestige's largest brand. Other established brands in the portfolio include Dimetapp, a leading children's cough and cold relief brand, and Anbesol.

Prestige's CEO, Ron Lombardi, stated the acquisition aligns with their disciplined M&A framework, enhances the portfolio, and offers strong margins and cash flow generation. The transaction is valued at 11.0x EBITDA, or 9.5x net of tax benefits, and is expected to be immediately accretive to gross and EBITDA margins and EPS.

Prestige plans to finance the acquisition with cash and a new Term Loan, expecting pro-forma net leverage of approximately 4.0x at closing, with a clear path to return to below 3.0x by fiscal 2028. The deal reinforces Prestige's long-term organic sales growth target of 2-3% and is expected to close in the first half of fiscal 2027.