(Reuters) – Prestige Brands Holdings Inc, which markets and distributes healthcare and cleaning products, has won U.S. antitrust approval to buy Insight Pharmaceuticals Corp on condition that it divest a motion-sickness drug, the Federal Trade Commission said on Thursday.
Prestige, known for its Dramamine motion sickness pills and Massengill feminine hygiene products, said in April that it would buy Insight for US$750 million. Insight also sells EPT home pregnancy tests and Uristat urinary health products, among others.
Prestige agreed to divest the over-the-counter motion sickness drug Bonine in order to win antitrust approval for the deal, the FTC said in a statement. Dramamine and Bonine are the only two name brand motion sickness drugs with significant sales, the FTC said.
Wellspring Pharmaceuticals has agreed to buy Bonine, the FTC said.
Prestige, whose growth has mainly been powered by acquisitions, bought the Dramamine brand in the United States in January 2011 and a year later purchased 17 North American OTC healthcare brands from GlaxoSmithKline Plc.
Insight Pharmaceuticals, which is based in Trevose, Pennsylvania, is being sold to Prestige by U.S. private equity firm Swander Pace Capital and Teachers’ Private Capital, the investment arm of Ontario Teachers’ Pension Plan. Swander Pace has been a primary investor in Insight since 2009, while Teachers made its initial investment in 2011.
(Reporting by Diane Bartz; Editing by Lisa Shumaker)
(This story has been edited by Kirk Falconer, editor of peHUB Canada)
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