This week High Ridge Brands Co. announced that following a comprehensive sales process and a competitive auction conducted under Section 363 of the U.S. Bankruptcy Code, an affiliate of Perrigo Company plc will acquire the Company\’s oral care business and an affiliate of Tengram Capital Partners will acquire the Company\’s 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 certain cure costs associated with the Company\’s existing business arrangements.
\”We are pleased to conclude a successful and competitive auction process,\” said Patricia Lopez, High Ridge Brands\’ Chief Executive Officer and President. \”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.\”
At closing, High Ridge Brands and the buyers will enter into a mutual Transition Services Agreement (TSA) in order to provide for a seamless transfer of the oral, skin and hair businesses. The TSA is expected to span at least 12 months.
The transaction is subject to approval by the U.S. Bankruptcy Court for the District of Delaware and certain other closing conditions. A hearing to seek court approval for the transaction is scheduled for Wednesday, February 26, 2020. The transaction is expected to close in the first quarter of 2020.