Moberg Pharma agrees to acquire three OTC brands in the U.S. from Bayer HealthCare

Moberg Pharma AB (OMX: MOB) (STO:MOB) has signed a deal to acquire three well established Over-The-Counter brands in the U.S. from Bayer HealthCare, LLC. Total annual sales for the brands are approximately 20 MSEK (ca 3 m$). The purchase price is 32 MSEK (4.8 m$) and is financed by available cash resources.

The acquired portfolio includes Domeboro®, a topical astringent used for relieving itch and minor skin irritations; Vanquish®, an internal analgesic; and Fergon®, an iron supplement. The brands will be sold through Moberg's current channel, primarily in chain drugstores and mass retailers, such as Walmart.

"It is with great pleasure that I present this acquisition. 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. Today's 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, CEO of Moberg Pharma AB.

Commenting on the transaction, 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."

The transaction is expected to close before the end of 2013.