A Mexican drugmaker aims to snap up the consumer products company Prestige Brands in a deal valued at almost $850 million. Genomma Lab, based in Mexico City, offered $16.60 per share for the U.S.-based company, which makes household cleansers, contact lens solutions, and over-the-counter remedies such as Compound W wart remover.
Prestige said it was surprised by the offer, made by Genomma without an initial approach to management. "We are puzzled by Genomma Lab's decision to go public without any attempt to first engage in discussions with, or make a proposal to, the board of directors of Prestige Brands," the company said (as quoted by Reuters).
Genomma said it's looking to expand internationally with the Prestige deal. But analysts were a bit skeptical, not only that the offer would go through, but also that the acquisition would be a good fit, Reuters notes. "In our opinion, the synergies from this deal are not clear," Banorte Ixe analyst Raquel Moscoso wrote to investors.