The Ontario Teachers' Pension Plan and Swander Pace Capital have signed a deal to sell Insight Pharmaceuticals to Prestige Brands Holdings for US$750-million.
Insight has a portfolio of nearly 30 brands of non-prescription medicines and personal care products including Monistat, the over-the-counter yeast infection treatment.
Prestige said the deal is expected to boost its annual revenue to about $800-million.
"In the last five years, our proven management team has led a dramatic transformation of our company into a diversified OTC health-care products company with a portfolio of iconic brands," Prestige chief executive Matthew Mannelly said.
"The acquisition of Insight is our largest transaction yet, and is in the `sweet spot' of our demonstrated core competency of acquiring, integrating and growing businesses through investment in brand support and innovation."
Prestige sells household cleaning products and other over-the-counter treatments like the sore throat remedy Chloraseptic and PediaCare.
Earlier this month, Prestige said that it would buy Hyrdralyte, an over-the-counter treatment for dehydration sold in Australia and New Zealand.
In 2012, it paid $660-million to buy 17 over-the-counter product brands from British drugmaker GlaxoSmithKline. Those include Goody's pain relievers and Sominex sleep aids.
Prestige shares closed at $27.31 on Thursday and have tumbled 24 per cent so far this year since closing 2013 at $35.80.
Teachers' made its first investment in Insight in 2011 through Teachers' Private Capital.
"Working with SPC and Insight management, we are pleased to have supported the company's growth strategy," said Jane Rowe, Senior Vice-President of TPC.
Teachers' manages the investments and administers the pensions more than 300,000 active and retired teachers in Ontario.
With files from The Associated Press