Moberg Pharma has entered an agreement to acquire three OTC brands in the U.S. from Bayer HealthCare for $4.8 million in cash. The transaction is expected to close before the end of the year.
The portfolio includes Domeboro, a topical astringent used for relieving itch and minor skin irritations; Vanquish, an internal analgesic; and Fergon, an iron supplement. Total annual sales for the brands are approximately $3 million.
The brands will be sold through Moberg’s current retail channel, primarily drugstores and mass retailers, including Walmart.
“We have worked to achieve this kind of deal since we acquired Alterna LLC a year ago, when we established our own presence in the U.S. This deal will very nicely leverage our U.S. sales platform, it contributes immediately to our sales and earnings and to our long term financial goal of achieving an EBITDA margin of 25%,” said Peter Wolpert, chief executive officer of Moberg Pharma.
Erica Mann, president, Bayer HealthCare, Consumer Care said, “We are pleased to sell these brands to Moberg following our realigned strategic focus and portfolio review. The transaction will allow us to further focus on our core brands and global brand expansion in the U.S. and other markets as we work to significantly strengthen our OTC business.”