Prestige Brands Holdings Inc. (NYSE: PBH) is acquiring DenTek Oral Care Inc. from TSG Consumer Partners LLC for $225 million in cash.
DenTek makes floss picks, tongue cleaners and other oral care products under the DenTek brand. Pharmacy retailers such as Wal-Mart Stores Inc. (NYSE: WMT), Target Corp. (NYSE: TGT), Walgreens Walgreens Boots Alliance Inc. (Nasdaq: WBA), CVS Health Corp. (NYSE: CVS) Corp., Rite Aid Corp. (NYSE: RAD) and Kroger Co. (NYSE: KR) carry DenTek. Prestige is funding the acquisition with cash and debt. TSG acquired DenTek in 2010.
Under TSG’s ownership, DenTek purchased sore and dry mouth patch makers Canker Cover and Oramoist from Quantum Health, and tongue cleaner producer Orabrush, both announced in 2015. Presitge, based in Tarrytown, New York, owns the Clear Eyes, Dramamine and Luden’s brands.
“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,” says Prestige CEO Ron Lombardi. Prestige expects DenTek to add about $60 million in revenue and $23 million in Ebitda. In 2014, Prestige bought home pregnancy test maker Insight Pharmaceuticals.
Sawaya Segalas and Sidley Austin are advising TSG and DenTek. Reed Smith LLP is representing Prestige.
TSG recently announced plans to sell protein bar maker ThinkThin to Glanbia plc (LON: GLB).