In an otherwise stable category where flat to low growth is the norm, the so-called “peg” section is giving oral care players reason to smile.
 
Peg—which encompasses products like floss picks, dental guards and tongue cleaners (not the toothpaste and brushes that represent the lion’s share of oral care)—grew by 9%, according to Nielsen data for the 52 weeks ending Oct. 3, 2015.
 
That’s the sweet spot for DenTek Oral Care, Inc., the Maryville, TN-based firm that Prestige Brands signed a definitive agreement to acquire from private equity firm TSG Consumer Partners.
 
The $225 million deal will “build out our oral care platform out to more than $100 million in revenue,” Prestige Brands’ CEO Ron Lombardi said during a conference call yesterday with analysts.
 
According to Pierre LeComte, managing director at TSG, during the past five years, DenTek has “significantly expanded its retail network across 30 countries and developed a leading position in several oral care categories.”
 
Those include floss picks and interdental brushes, where DenTek is currently No. 1 and No. 2, respectively.
 
Prestige Brands’ oral care stable includes the well-known Efferdent brand as well as The Doctor’s night guard line, Ezo denture cushions, Effergrip denture adhesive and Gly-Oxide oral antiseptic cleansers.
 
DenTek offers a host of products from its top selling floss picks and interdental brush cleaners as well as dental guards and products that care for braces. The company’s products are available in more than 30 countries; in the US, the DenTek lineup is available in major retailers like Walmart, Target, Walgreens, CVS, Rite Aid and Kroger.
 
Prestige executives pointed to synergies between its business model and that of DenTek.
 
“Dentek has long history of bringing innovation to the category. It’s outsourced manufacturing business model, which is similar to Prestige’s, lets the company focus on sales, marketing and new product development,” Lombardi said.
 
DenTek’s offerings include items like the Easy Brush with Fluoride, billed by the firm as the first and only interdental cleaner with an advanced fluoride coating to help remove plaque, reduce tooth decay and fight bad breath. It features a tapered brush, nonslip flexible handle and mint flavored coated bristles. DenTek also offers Extra Gentle Floss Picks that feature Soft Silky Ribbon Floss, which comfortably glides between teeth while a built-in tongue cleaner and smooth mint flavor work together to freshen the mouth and fight bad breath.
 
“TSG Consumer has been an outstanding partner of ours during a period of accelerated growth at DenTek,” noted David Fox, CEO and president of DenTek, which was founded in 1984. (TSG stepped in during 2010) “TSG’s input regarding our new product development, sales and marketing activities, and acquisitions was immeasurable and we are grateful for their expert guidance.”
 
Prestige Brands said it expects to close the deal in the first half of 2016, subject to regulatory approvals.