TSG Consumer Partners has entered into an agreement to sell DenTek Oral Care to publicly traded Prestige Brands for $225 million on a debt-free, cash-free basis. The transaction is expected to close during the first half of 2016.
DenTek, a portfolio company of TSG since December 2010, develops and markets oral care products including floss picks, interdental brush cleaners, dental guards, disposable dental picks, braces care and dental repair products. The company’s products are sold in over 30 countries and in retail stores across the US including Walmart, Target, Walgreens, CVS, Rite Aid and Kroger. DenTek was founded in 1984 by John Jansheski. The company originated when John’s father, a dentist, invented an at-home tarter removal device, known to many as the dental pick. DenTek is led by CEO David Fox and is headquartered south of Knoxville in Maryville, TN (www.dentek.com).
“We have great respect for David Fox and the other members of DenTek’s talented management team, and have greatly valued our partnership with them,” said Pierre LeComte, a Managing Director at TSG. “Over the last five years, DenTek has significantly expanded its retail network and developed a leading position in several oral care categories. We are confident DenTek will continue to build on its momentum under Prestige Brands.”
Prestige Brands (NYSE: PBH) markets and distributes over-the-counter healthcare and household cleaning products. It was formed by the merger of Medtech Products, Prestige Brands International, and The Spic and Span Company in 2005. Among the brands owned by Prestige are Chloraseptic sore throat products, Clear Eyes, Compound W wart remover, Dramamine, Efferdent, Luden’s, and the Comet and Spic and Span cleaning products. The company is headquartered in Tarrytown, NY (www.prestigebrands.com).
TSG Consumer Partners makes control and non-control investments of $15 million to $100 million in companies with EBITDAs of $3 million to $50 million where there is an opportunity to enhance value by extending brand, expanding distribution and improving operations. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household, apparel & accessories, and ecommerce sectors. The firm has $3 billion of assets under management and is headquartered in San Francisco (www.tsgconsumer.com).
“TSG Consumer has been an outstanding partner of ours during a period of accelerated growth at DenTek. TSG’s input regarding our new product development, sales and marketing activities, and acquisitions was immeasurable and we are grateful for their expert guidance,” said CEO David Fox.
Consumer focused investment bank Sawaya Segalas (www.sawayasegalas.com) was the financial advisor to DenTek.
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-1-15