Perrigo and Tengram Capital affiliates to acquire High Ridge Brands

High Ridge Brands’s oral care business will be acquired by the affiliates of Perrigo and its hair care and skin cleansing business by an affiliate of Tengram Capital following a comprehensive sales process and competitive auction conducted under section 363 of the US Bankruptcy Code.

As per the terms of the agreement, the consideration includes a cash payment of $120.5m to High Ridge Brands. It also includes the assumption of working capital by the buyers and substantially all go-forward liabilities of the businesses, in addition to certain cure costs related with High Ridge’s existing business arrangements.

High Ridge Brands CEO and president Patricia Lopez said: “We are pleased to conclude a successful and competitive auction process.

“This outcome maximizes the value of our strong brands and supports the interests of all of our stakeholders. The buyers bring significant resources and experience and have long track records helping acquired brands build on their strong foundations and continue to grow.

“The transaction will be seamless for both our customers and consumers. As we finalize the sale, we remain focused on continuing the on-time, in-full deliveries of all our hair care, skin cleansing and oral product lines.”

The transaction is stated to be subject to approval by the U.S. Bankruptcy Court for the District of Delaware and certain other closing conditions.

A hearing for court approval regarding the transaction is slated on 26 February. The deal is expected to close in the first quarter of 2020.

High Ridge Brands and the buyers will enter i ntoa mutual Transition Services Agreement (TSA) to enable a seamless transfer of the oral, skin and hair businesses.

This TSA is expected to span for at least 12 months.