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Prestige sells three shampoo brands

This article was originally published in The Tan Sheet

Executive Summary

Prestige Brands Holdings sells three shampoo brands - Prell, Denorex Dandruff Shampoo andZincon Dandruff Shampoo - to Ultimark Products, the Irvington, N.Y.-based firm says Oct. 29. The brands, which make up 2 percent to 3 percent of the firm's annual sales, sold for $8 million with an additional payment of $1 million due Oct. 28, 2010. Prestige said it will use the proceeds to pay down its debt. "The successful sale of these businesses allows us to increase focus on our two larger segments, over-the-counter healthcare and household cleaning products, to enhance shareholder value," said President and CEO Matthew Mannelly. Prestige also notes board members Peter Mann and Vincent Hemmer resigned. Mann, the firm's founder and a former CEO and chairman, will pursue a new business opportunity, and Hemmer, a private equity owner of Prestige stock, resigned after his firm, GTCR Golder Rauner, significantly reduced its holdings, the firm said Oct. 27

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