Smooth move for Thornton & Ross in nappy rash deal
THORNTON & Ross, the Yorkshire-based group which is the largest independent pharmaceutical group in the UK, has paid £2.2m for a nappy rash treatment brand.
The family-owned Huddersfield firm has bought the Metanium brand from Ransom.
The Metanium brand is made up of two ointment products – Metanium nappy rash ointment and Metanium cradle cap cream.
Thornton & Ross, which has brands has in its portfolio including Zoflora disinfectant, Covonia cough medicine, Setlers digestive tablets and Mycota athlete’s foot treatments, is paying £2m for the Metanium brand and £200,000 for the Metanium inventory.
Ransom said it would use £1m of the sale proceeds to reduce its borrowings with the remainder being used for working capital purposes.
The Metanium products generate annual sales of around £1.05m.
It is expected that Ransom will continue to manufacture Metanium while arrangements are made to transfer production to Thornton & Ross’s facilities.
Ivor Harrison, Ransom’s chief executive, said: “The board believes the divestment of Metanium is in the best interests of the company and its stakeholders.
“Furthermore, the divestment is consistent with the company’s strategy of creating a focused, natural consumer healthcare offering.”
He added: “As stated in the announcement with the Interim Accounts in December, trading continues to be difficult and the outlook uncertain as we implement the turnaround plan while operating under very testing business and economic conditions.”
Thornton & Ross has been on an acquisition strategy in recent times.
The company was founded in 1922 by Nathan Thornton and Phillip Ross to make soft soap and pack household ammonia.
Today, it produces a range of medicinal and household products, including head lice treatment Hedrin, Fenox nasal spray and Transvasion for muscular aches and pains.
