Genomma Gives Up on Prestige

Genomma Lab has decided not to continue with its attempt to buy US healthcare and cleaning brands company Prestige Brands (PBH), it says. Prestige has told the Mexican pharmaceuticals company it would need a “significant increase” to the $16.60 per share, or $834m total, unsolicited offer Genomma originally made in February, Genomma says. Prestige had previously indicated the offer was too low, and also adopted a shareholder rights plan, better known as a ‘poison pill’, in an attempt to block the move. The offer represented an implied 9.5x Ebitda multiple in a best-case scenario, and likely undervalued Prestige’s shares, Janney Capital Markets said at the time. Genomma notes it had obtained a commitment for up to $2.2bn in financing for the deal. PBH owns more than 50 brands, including Comet, Compound W, Efferdent, Dramamine, and Spic And Span.