Zila to acquire Professional Dental Technologies

Nov. 15, 2006
Acquisition to enhance growth of cancer detection business.

PHOENIX, Arizona--Zila, Inc. has announced the execution of a definitive agreement for the acquisition of Professional Dental Technologies, Inc., a privately-held, professional dental products company headquartered in Batesville, Ark.

Through its national sales and marketing organization, ProDentec offers--directly to dental professionals--a small suite of proprietary, high-margin dental products that complement Zila's cancer screening and detection products. The acquisition price is $34 million, which will be paid in cash at closing.

The closing is expected to occur on or about November 28, 2006 and is subject to normal and customary closing conditions.

"This acquisition completes Zila's transformation into a cancer diagnostic company focused initially on oral cancer," stated Douglas D. Burkett, Ph.D., Chairman, Chief Executive Officer and President of Zila, Inc.

"Leveraging ProDentec's national dental sales force and its compelling continuing education seminar series, will allow us to fully realize the large market potential of ViziLite® Plus and future oral cancer detection products."

ProDentec focuses on Soft Tissue Management oral care products that it sells directly to dental offices through its dedicated national sales force. The company's national marketing program reaches most of the nation's dental offices and includes approximately 115 continuing education seminars each year that dentists and their staffs pay to attend.

These seminars, which are certified by the American Dental Association and the Academy of General Dentistry, are ideally suited to train a large number of dental offices on the importance of oral cancer screening with ViziLite Plus. ProDentec has annual revenue of approximately $35 million and EBITDA of approximately $5 million.

"With over twenty years of operating history exclusively serving dental professionals, ProDentec looks forward with enthusiasm to working with Zila to establish ViziLite Plus as the standard of care for oral cancer screening," stated William T. Evans, Chief Executive Officer and President of Pro-Dentec.

Zila believes that ProDentec will enable rapid growth of ViziLite Plus while the OraTest regulatory effort is completed, such that following its FDA approval, OraTest will be quickly launched through a capable and growing sales and marketing infrastructure focused on oral cancer detection.