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Teachers, partner to sell Insight Pharmaceuticals for $750-million

A sign hangs in the office of the Ontario Teachers' Pension Plan.

Matthew Sherwood/The Globe and Mail

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.

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"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.

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"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

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