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High Ridge Brands Sells Oral, Hair & Skin Care Segments

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After filing for Chapter 11 bankruptcy, High Ridge Brands' oral care business is set to be acquired by an affiliate of Perrigo Company and its hair and skin care businesses will be acquired by an affiliate of Tengram Capital Partners.

High Ridge Brands Co. has announced an affiliate of Perrigo Company plc will acquire its oral care business and an affiliate of Tengram Capital Partners will acquire its hair and skin care businesses.

After filing for Chapter 11 bankruptcy in December, 2019, the acquisitions supervene a comprehensive sales process and competitive auction conducted under Section 363 of the U.S. Bankruptcy Code.

Under the terms of the agreement, the consideration includes a cash payment of $120.5 million to High Ridge Brands and the assumption by the buyers of working capital and substantially all go-forward liabilities of the businesses, as well as certain cure costs associated with the High Ridge’s existing business arrangements.

At closing, High Ridge Brands and the buyers will enter into a mutual Transition Services Agreement (TSA), expected to span at least 12 months, in order to provide for a seamless transfer of the oral, skin and hair businesses.

The transaction, which is expected to close in the first quarter of 2020, is subject to approval by the U.S. Bankruptcy Court for the District of Delaware and certain other closing conditions. A hearing to seek court approval for the transaction is scheduled for February 26, 2020.

Debevoise & Plimpton LLP and Young Conaway are serving as the High Ridge’s legal counsel and Ankura Consulting Group is serving as its restructuring adviser. PJT Partners is also serving as its financial adviser.

“We are pleased to conclude a successful and competitive auction process,” Patricia Lopez, High Ridge Brands' CEO and president, said. “This outcome maximizes the value of our strong brands and supports the interests of all of our stakeholders. The buyers bring significant resources and experience and have long track records helping acquired brands build on their strong foundations and continue to grow. The transaction will be seamless for both our customers and consumers. As we finalize the sale, we remain focused on continuing the on-time, in-full deliveries of all our hair care, skin cleansing and oral product lines.”

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