Prestige Consumer Healthcare Acquires LaCorium Health for $150M, Reports FY26 Results & Positive FY27 Outlook

summarizeSummary

Prestige Consumer Healthcare announced a $150 million acquisition of Australian therapeutic skin care leader LaCorium Health, alongside reporting mixed fiscal 2026 results and issuing a positive financial outlook for fiscal 2027 and the medium term.

check_boxKey Events

• Acquires LaCorium Health for $150M

  Prestige Consumer Healthcare's subsidiary entered a definitive agreement to acquire LaCorium Health, an Australian therapeutic skin care leader, for approximately $150 million in cash. The transaction is expected to close in Q2 fiscal 2027.

• Reports Fiscal Year 2026 Results

  The company reported fiscal year 2026 revenues of $1,088.7 million (down 4.3%) and adjusted diluted EPS of $4.38 (down 3.1%), but free cash flow increased to $246.4 million.

• Issues Positive FY27 Outlook

  For fiscal year 2027, Prestige projects revenues of $1,100-$1,121 million (1-3% organic growth), adjusted diluted EPS of $4.42-$4.51, and free cash flow of $250 million or more.

• Announces Strong Medium-Term Targets

  The company anticipates a 10% annual revenue growth CAGR and an 8% EPS growth CAGR over the next three years, with approximately $900 million in aggregate free cash flow.

auto_awesomeAnalysis

Prestige Consumer Healthcare announced a definitive agreement to acquire LaCorium Health for approximately $150 million in cash. This acquisition, representing about 6.1% of the company's market capitalization, is a significant strategic expansion into the Australian therapeutic skin care market, expected to generate double-digit sales growth and $12 million in EBITDA with synergies. Concurrently, the company reported its fiscal year 2026 results, which showed a decline in revenue and adjusted EPS but an increase in free cash flow. More importantly, Prestige provided a positive outlook for fiscal year 2027, projecting organic revenue growth of 1% to 3%, increased adjusted diluted EPS, and over $250 million in free cash flow. The company also outlined ambitious medium-term targets, including a 10% annual revenue growth CAGR and an 8% EPS growth CAGR over the next three years, supported by these acquisitions and eye care capacity recovery.