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.
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.
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.”