PRO-DEX COMPLETES AGREEMENT TO ACQUIRE CHALLENGE PRODUCTS INC.
CITRUS HEIGHTS, Calif., July 7 /PRNewswire/ -- Pro-Dex Inc. (NASDAQ: PDEX) a dental products and services company, today announced that it reached an agreement to acquire Challenge Products Inc., an Osage Beach, Mo.-based manufacturer of chemical products for the dental industry. Under the terms of the agreement Pro-Dex will acquire all of Challenge Products' outstanding shares for 390,000 shares of Pro-Dex' restricted common stock. The acquisition, which will be accounted for as a pooling of interests, is subject to Pro-Dex' satisfaction with an audit of Challenge Products Inc. financials, due diligence requirements, certain regulatory approvals and customary closing procedures. Challenge Products Inc. is a privately held company which manufactures and markets fluoride products for preventative dentistry and a line of complementary products which are used for the cleaning, remineralization, whitening and protection of teeth. This acquisition will launch Pro-Dex into the $100 million per year domestic market for fluoride products; 43 percent of which is divided among smaller, independent companies such as Challenge. Challenge currently markets more than 40 products which are sold primarily through private label agreements with major distributors and through telemarketing. "Challenge's successful product line will provide us with an expanded overall market share and a base for new product introductions. We will continue to focus on marketing programs which maximize profit margins by targeting the dental professional directly," said Kent Searl, chief executive officer of Pro-Dex Inc. Included in the acquisition is challenge's 14,000-square-foot manufacturing facility and an additional 7 1/2 acres of undeveloped land. "Challenge's resources and unique capabilities provide significant opportunities for joint product development and distribution efforts to broaden the product offerings of both companies," said Searl. Pro-Dex Inc. leases, equips and staffs five dental centers in Sacramento-area Sears retail stores. Through its wholly owned subsidiary, Biotrol International Inc., Pro-Dex manufactures and markets a full line of infection control products specifically designed for the dental care provider, including barrier protection items; disinfectants, cleaners and deodorizers for surfaces, instruments, and vacuum systems; skin care products; and a new line of disposable gowns. -0- 7/7/93 /CONTACT: Shannon T. Squyres, president of Corporate Relations Group, 714-955-1860, for Pro-Dex/ (PDEX)
CO: Pro-Dex Inc.; Challenge Products Inc. ST: California, Missouri IN: HEA CHM SU: TNM
LM-JL -- LA007 -- 8962 07/07/93 09:30 EDT
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|Date:||Jul 7, 1993|
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