Prestige Brands (NYSE: PBH) has closed a deal for private equity-backed Insight Pharmaceuticals, the maker of home pregnancy test EPT and medication Monistat, for $750 million.
Revose, Pennsylvania-based Insight sells over-the-counter products, including women's health and personal-care products.
The deal expands Tarrytown, New York-based Prestige's product offerings, which already included over-the-counter medications Beano and Dramamine, plus household cleaners and other care products.
The deal was announced in April. Seller Swander Pace did not run a formal auction process for the transaction, according to Mo Stout, a managing director at the firm.
"They have an operating model that is similar to what we had," Stout says, so the firm felt they were a logical buyer. "They were really attracted to the women's health platform."
Swander Pace originally invested in the group in 2009. Insight Pharmaceuticals' sales grew from about $80 million to $200 million under Swander Pace's ownership. The firm received a roughly four times return of capital and IRR in excess of 30 percent on the transaction, according to a source with knowledge of the deal. The firm had also previously invested in Prestige back in 2002.
Kirkland & Ellis LLP was Swander Pace's legal counsel for the deal.