PRESTIGE BRANDS HOLDINGS, INC. (NYSE:PBH) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On July 2, 2018 (the “Closing Date”), Prestige Brands International, Inc. (“PBI”), The Spic and Span Company, an affiliate of PBI (“S&S Co.” and, together with PBI, the “Sellers”), Medtech Holdings, Inc. (as guarantor only), and Prestige Brands Holdings, Inc. (the “Company”) (solely with respect to certain limited provisions) entered into an Asset Purchase Agreement (the “Purchase Agreement”) with KIK International LLC (the “Buyer”), to which the Sellers agreed to sell to the Buyer certain assets (the “Purchased Assets”), including certain intellectual property rights, associated with a number of the Sellers’ household cleaning product business lines (the “Businesses”) and the Buyer agreed to assume certain liabilities related to the Businesses (collectively, the “Transaction”). The purchase price for the Purchased Assets was $69,000,000, subject to certain adjustments.

The Purchase Agreement contains customary representations, warranties and covenants from the parties and indemnification rights after the closing of the Transaction that are customary for transactions of this type, subject to certain limitations set forth therein. The Purchase Agreement also contains a non-competition clause to which the Company may not and may not permit its subsidiaries to, directly or indirectly, engage in the business of developing, manufacturing, packaging, offering for sale, selling or marketing household cleaning product in North America, subject to certain exceptions described in the Purchase Agreement.

As a condition to the Purchase Agreement, the Sellers, the Buyer and Prestige Brands, Inc. (as guarantor only) entered into a Transition Services Agreement on the Closing Date, to which the Sellers will provide certain services to the Buyer related to the transition of the Businesses for the periods specified for the services in the Transition Services Agreement.

The foregoing description of the Transaction and the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase Agreement, which the Company intends to file as an exhibit to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.

When filed, the Purchase Agreement will be included to provide investors and security holders with information regarding its terms. It will not be intended to provide any other factual information about the Company or the Sellers. The Purchase Agreement contains warranties and covenants that the Sellers, on one hand, and the Buyer, on the other hand, made to each other as of specific dates. The assertions embodied in those warranties and covenants were made solely for purposes of the Purchase Agreement between the parties and may be subject to important qualifications and limitations agreed to by the parties in connection with negotiating its terms, including being qualified by confidential disclosures exchanged between the parties in connection with the execution of the Purchase Agreement. Moreover, the warranties may be subject to a contractual standard of materiality that may be different from what may be viewed as material to investors or security holders, or may have been used for the purpose of allocating risk between the parties to the Purchase Agreement rather than establishing matters as facts. Moreover, information concerning the subject matter of the warranties may change after the date of the Purchase Agreement, which subsequent information may or may not be fully reflected in the Company’s public disclosures. For the foregoing reasons, no person should rely on the warranties contained in the Purchase Agreement as statements of factual information at the time they were made or otherwise.

(b) On June 30, 2018, the Company and Christopher Heye, Senior Vice President, Strategic Planning, Canada, and Women’s Health, mutually agreed that Mr. Heye’s employment with the Company will terminate effective June 30, 2018. Mr. Heye was a participant in the Prestige Brands Holdings, Inc. Executive Severance Plan (the “Severance Plan”). to, and subject to the terms and conditions of, the Severance Plan, in connection with his termination of employment, Mr. Heye will receive (a)a severance payment of $518,000, payable over 12 months following his termination date in accordance with the Company’s regular payroll practices, (b) a prorated bonus for fiscal 2019, based on actual performance results for fiscal 2019, to be paid concurrently with corresponding payments made to other similarly-situated executives, and (c) payment of COBRA premiums for twelve months. Mr.Heye’s outstanding equity awards will be exercisable or forfeited in accordance with their terms. A summary of the material terms of the Severance Plan can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 2, 2017 (the “8-K”), and is incorporated herein by reference. The summary is qualified in its entirety by reference to the full text of the Severance Plan, a copy of which was filed as Exhibit 10.1 to the 8-K, and is incorporated herein by reference.

On July 2, 2018, the Company issued a press release announcing the execution of the Purchase Agreement and the divestiture of the Purchased Assets related to the Businesses to the Buyer. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Item 7.01 and Exhibit 99.1 attached hereto is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into those filings of the Company that provide for the incorporation of all reports and documents filed by the Company under the Exchange Act.

Prestige Brands Holdings, Inc. Exhibit
EX-99.1 2 tv498060_ex99-1.htm EXHIBIT 99.1   Exhibit 99.1   Prestige Brands Holdings,…
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About PRESTIGE BRANDS HOLDINGS, INC. (NYSE:PBH)

Prestige Brands Holdings, Inc. is engaged in the marketing, sales and distribution of over-the-counter healthcare and household cleaning products. The Company operates through three segments: North American Over-the-Counter (OTC) Healthcare; International Over-the-Counter Healthcare, and Household Cleaning. Its portfolio of OTC healthcare products includes core brands, such as DenTek specialty oral care products, Monistat women’s health products, Nix lice treatment, Chloraseptic sore throat treatments, Clear Eyes eye care products, Compound W wart treatments, The Doctor’s NightGuard dental protector, Little Remedies pediatric over-the-counter products, Efferdent denture care products, Luden’s throat drops, Dramamine motion sickness treatment, BC and Goody’s pain relievers, Beano gas prevention, Debrox earwax remover, and Gaviscon antacid. The Company’s portfolio of Household Cleaning brands includes the Chore Boy, Comet and Spic and Span brands.