Ascendia sells product lines for $17 million
NEW YORK, Oct 9 (Reuters) - Ascendia Brands Inc (ASCBQ.PK), a health and beauty care products maker, received approval to sell its Mr. Bubble children's bath line, Binaca breath freshener and other well-known brands to five buyers for about $17 million.
The U.S. Bankruptcy Court in Wilmington, Delaware, approved the deals on Tuesday and Wednesday.
The Mr. Bubble line sold for $4.8 million to Village Co LLC, which makes children's bubble bath under a licensing agreement with Sesame Street.
Helen of Troy Ltd (HELE.O) bought Ogilvie home perm and coloring kit line for $4.725 million, and Dr. Fresh Inc. purchased the Binaca mouthwash brand and Tek's toothbrush line for $3.1 million.
Naterra International Inc paid $3 million for the Baby Magic bath and skin-care line, and KCM Brands LLC paid $1 million for the Tussy antiperspirant line and Dorothy Gray skin-care line.
Ascendia filed for Chapter 11 bankruptcy protection in August, joining a growing number of companies in the consumer products sector filing for protection from creditors as the U.S. economy weakens and costs rise.
The Hamilton, New Jersey, company said it was strapped with rising raw material costs, lower-than-expected sales of its Calgon and Healing Garden brands and higher-than-expected returns from some customers. It also blamed "general economic conditions" for the filing.
Ascendia sold the products through retailers such as Wal-Mart Stores Inc (WMT.N) and Target Corp (TGT.N), dollar-store chains such as Dollar General Corp (DG.N) and specialty stores like Ulta Salon Cosmetics & Fragrance Inc (ULTA.O). (Reporting by Sarah Coffey, editing by Gerald E. McCormick)
