High Ridge Brands Co., which filed for Chapter 11 bankruptcy in December, has announced the sale of two of its product portfolios.
The Stamford-headquartered High Ridge is selling its oral care business – which includes the brands Firefly, Reach and Dr. Fresh – to Ireland’s Perrigo Co. plc. The company’s hair and skin care portfolio – which includes the brands Zest, Alberto VO5 and Coast – was sold to the New York City venture capital firm Tengram Capital Partners.
High Ridge Brands stated the transactions include a cash payment of $120.5 million 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 company’s existing business arrangements.”
The transactions are subject to approval by the U.S. Bankruptcy Court for the District of Delaware, which is scheduled to hear the case on Feb. 26.
“We are pleased to conclude a successful and competitive auction process,” said Patricia Lopez, president and CEO of High Ridge Brands. “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.”