High Ridge Brands announces businesses being sold for $120.5 million

By Caroline Salls

Pittsburgh, Feb. 24 – High Ridge Brands Co. announced Monday that an affiliate of Perrigo Co. plc will acquire its oral care business and an affiliate of Tengram Capital Partners will acquire its hair care and skin cleansing business.

Under the terms of the agreement, the consideration includes a cash payment to High Ridge Brands of $120.5 million and the assumption by the buyers of working capital and substantially all go-forward liabilities of the businesses, as well as some cure costs associated with High Ridge’s existing business arrangements.

“This outcome maximizes the value of our strong brands and supports the interests of all of our stakeholders,” High Ridge chief executive officer and president Patricia Lopez said in a company news release.

“The buyers bring significant resources and experience and have long track records helping acquired brands build on their strong foundations and continue to grow.”

At closing, High Ridge Brands and the buyers will enter into a transition services agreement to provide for a seamless transfer of the oral, skin and hair businesses. That agreement is expected to span at least 12 months.

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

The sale hearing is scheduled for Wednesday.

High Ridge said the sale is expected to close in the first quarter.

Debevoise & Plimpton LLP and Young Conaway are serving as the company’s legal counsel. Ankura Consulting Group is serving as restructuring adviser. PJT Partners is serving as financial adviser.

High Ridge is a Stamford, Conn.-based personal care products company. The company filed bankruptcy on Dec. 18 under Chapter 11 case number 19-12689.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.