Prell, Denorex, and Zincon bought by Scott’s Liquid Gold

11-Jul-2016 - Last updated on 12-Jul-2016 at 16:31 GMT

The three mainstay consumer hair care brands, previously owned by Ultimark Products of Pennsylvania, were acquired for several million dollars and will be folded into Scott’s existing health and beauty portfolio.

In a deal announced late last week, Scott’s Liquid Gold will pay $9.1m for the trio of brands (subject to adjustment).

“We are excited about our acquisition of these brands. Prell, Denorex, and Zincon products will be great additions to our existing health and beauty care portfolio of products,” Mark Goldstein, chairman, president, and CEO of SLGD, tells the press.

In fact, the transaction nearly doubles the company’s personal care brand portfolio. Scott’s Liquid Gold owns the Alpha skin care line (anti-aging, cleansers, skin care, body care, etc.); Neoteric Diabetic skin care lotion; and distributes 7th Heaven facial masques as well as Batiste Dry Shampoo in specialty channels.

So this month’s deal is a big one: “this investment represents an important strategic opportunity that will benefit our shareholders, consumers, customers, and employees,” affirms Goldstein.

Brand notes

Prell, distinctive for its kelly green color, has been sold as a basic family shampoo brand for 50 years. Denorex is a medicated dandruff shampoo that’s been on the market for about 10 years less than Prell. And, Zincon is a mass market dandruff shampoo formulated with Pyrithione Zinc 1% as the active ingredient.

Financial notes

Concurrent with the acquisition, Scott’s took a loan from JPMorgan Chase Bank, N.A. for $2.4m and a $4m revolving credit facility. The company also ended its revolving credit arrangement with Summit Financial Resources, according to the press release.

The Chase financing will go partly to the Ultimark deal and partly toward “SLGD’s general corporate purposes and working capital.”