Moberg Pharma AB announced that the company has entered into an agreement with Strides Pharma Inc. to divest the brand PediaCare for a total consideration of $5 million plus the inventory value at closing.
PediaCare produces over the counter cough, cold, fever/pain relief and allergy relief products for children.
Moberg Pharma’s strategy is to build value through profitable growth of strategic brands, to increase the value of pipeline assets and to make value-adding acquisitions.
Divesting PediaCare enables Moberg Pharma to focus on its core business. The divested brand originated from an acquisition in July 2016 where the primary purpose was to acquire New Skin — a strategic asset in specialty skin care. New Skin was also the dominant profitability contributor in the acquired portfolio. The divestment of PediaCare results in no capital gain or loss.
The transaction is expected to close within the next four weeks.
“We are pleased with the agreement with Strides which enables us to further focus on our strategic assets and M&A activities,” says Peter Wolpert, CEO Moberg Pharma.
(Source: Business Wire)