Prestige Consumer Healthcare Buys Breathe Right in $1.045 Billion Asset Deal
The acquisition expands the company into the 'better-breathing' category with a brand that will become the largest in its portfolio.
Prestige Consumer Healthcare Inc. (PBH) completed its acquisition of the Breathe Right brand and several other consumer health brands in an asset-purchase deal valued at $1.045 billion. The transaction price is approximately $900 million net of anticipated tax benefits valued at $150 million.
Prestige financed the acquisition using cash on hand and a new term loan credit facility. The acquired portfolio generated approximately $200 million in revenue and $95 million in EBITDA over the twelve months ended December 31, 2025. This represents a valuation of 11.0x EBITDA, or approximately 9.5x EBITDA net of the anticipated tax benefits.
Management stated that the acquisition fits within the company's disciplined M&A framework and provides a foundation for sustained growth. "With its strong consumer awareness, Breathe Right is a trusted, multi-use consumer health solution in the attractive and growing sleep and better-breathing categories, with solid opportunity for long-term brand building," said Ron Lombardi, Chairman, President, and CEO of Prestige Consumer Healthcare.
Breathe Right, created in the 1990s, is the leading nasal strip brand in the U.S. and Canada, where it holds approximately 60% market share. The brand serves various needs, including sleep wellness, snoring, and allergy relief. The acquisition also includes other established brands, such as Dimetapp, a children's cough and cold relief brand, and Anbesol, an oral pain relief brand.
Prestige noted that the deal follows a similar strategic approach to its acquisition of Dramamine in the motion sickness category, focusing on brands synonymous with their respective categories.
The company expects the transaction to be immediately accretive to revenue, earnings per share, and gross and EBITDA margins. While the deal resulted in a pro-forma bank-defined net leverage of approximately 4.0x at close, Prestige expects to return to its long-term leverage target of below 3.0x by fiscal 2028, supported by strong free cash flow generation.