Prestige Brands to acquire Dentek Holdings
By Canadian Packaging staffGeneral Brand acquisition DenTek Oral Care Prestige Brands Holdings
Acquisition will add scale brand and expand Prestige Brands' oral care platform.
TARRYTOWN, N.Y.—Prestige Brands Holdings, Inc. has announced it has entered into a definitive agreement to acquire DenTek Oral Care, Inc., a privately-held marketer and distributor of oral care products for US$225 million in cash. This transaction would add pro forma revenues and adjusted EBITDA of approximately $60 million and $23 million, respectively on an annualized basis.
The acquisition of DenTek will expand Prestige’s portfolio of iconic OTC (over-the-counter) brands into the fast-growing specialty oral care products category in the U.S., Australia and Europe. The DenTek brand includes the No. 1 dental floss pick, as well as other oral care products for adults and children.
“The acquisition of DenTek, when combined with our existing oral care products, will create our fifth $100 million platform and provide the opportunity to enter the fast-growing specialty oral care category anchored by the DenTek brand,” says Prestige Brands Holdings president and chief executive officer Ron Lombardi. “DenTek is an excellent fit with our acquisition criteria, which is focused on using M&A to build our portfolio and create brand-building and innovation opportunities for long-term growth. The DenTek brand complements our existing oral care platform and fits our business model with outsourced manufacturing and distribution, allowing us to focus on our core competencies in marketing and sales.”
Lombardi continues, “The acquisition of DenTek will mark our seventh transaction in the past six years as we continue to execute our proven strategy of acquiring, integrating and building brands to grow our portfolio and increase shareholder value. This acquisition will bring our portfolio closer to our stated objective of 85 percent ‘invest for growth’ brands and 15 percent ‘manage for cash.’ We look forward to adding the DenTek brand to our growing portfolio and anticipate closing on this transaction during the first half of calendar year 2016, subject to regulatory approvals.”
Prestige Brands Holdings, Inc.
The company markets and distributes brand name over-the-counter healthcare and household cleaning products throughout the U.S., Canada, and Australia and in certain other international markets. Core brands include Monistat women’s health products, Nix lice treatment, Chloraseptic sore throat treatments, Clear Eyes eye care products, Compound W wart treatments, The Doctors NightGuard dental protector, Little Remedies pediatric products, Efferdent denture care products, Luden’s throat drops, Dramamine motion sickness treatment, BC and Goody’s pain relievers, Debrox earwax remover, and Gaviscon antacid in Canada. More information can be found at www.prestigebrands.com.
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