Genomma Labs offers $834 million for Prestige Brands, maker of Spic and Span

Reuters

Mexican pharmaceutical products company Genomma said on Tuesday it was offering to buy Prestige Brands Holdings Inc, the maker of Comet and Spic and Span cleaners, for $834 million in cash.

Mexico City-based Genomma said it was offering $16.60 cash per share for Prestige Brands, a premium of 23 percent over Prestige's closing share price on Feb. 17.

Shares in Genomma Lab fell 8 percent after the announcement, while Prestige shares soared 22 percent to $16.48.

The Mexican company, which is due to report fourth-quarter results on Friday, earned 795 million pesos ($62.72 million) in the first three quarters of 2011.

Genomma had 1.776 billion Mexican pesos ($140.12 million) in cash on hand at the end of the third quarter. The company did not say how it planned to finance the deal.

"We expect that we will obtain the necessary financing for the proposed transaction in an expeditious manner," Genomma said in a letter to Prestige.

Prestige, which also sells brands such as Clear Eyes contact lens solution and Compound W wart remover, did not return calls seeking comment.

www.reuters.com/article/2012/02/21/genomma-prestige-idUSL2E8DLAMS20120221