Moberg Pharma has entered into an agreement with Caret Pharma LLC. to divest the brand Fiber Choice for a total consideration of $6.7 million plus the inventory value at closing.
The divestment is expected to result in a capital gain of circa $1.6 million. Divesting the brand enables Moberg Pharma to further focus resources on its core businesses.
Fiber Choice is a digestive health brand, with products for daily fiber supplementation. Moberg Pharma acquired Fiber Choice together with PediaCare, New Skin and Dermoplast, in 2016 from Prestige Brands, Inc. As communicated previously, the primary purpose of the acquisition was to add New Skin and Dermoplast, two strategic assets in specialty skin care, to the Moberg Pharma portfolio.
Divesting the brand enables Moberg Pharma to focus resources on its strategic brands. This transaction follows the December 2016 divestment of PediaCare and results in a capital gain of circa $1.6 million. During the period of ownership (July 7, 2016 – June 30, 2017) Fiber Choice contributed net sales of $7.1 million, however this figure also includes discontinued product items.
The transaction is expected to close within the next four weeks.
“We are pleased with the agreement with Caret Pharma LLC. which enables us to increase focus on the core Moberg Pharma portfolio. We have now successfully divested both non-core brands included in the acquisition from Prestige Brands, while the acquired strategic brands are developing well”, says Peter Wolpert, CEO Moberg Pharma.