Swiss dental implant maker Straumann has agreed to purchase convertible bonds from South Korean implant company MegaGen for $30 million, as part of its drive to expand in the Asia/Pacific region.
Straumann has the option to convert the bonds into MegaGen shares in 2016 and has the option to purchase additional shares from shareholders to obtain a majority stake in the Korean company.
MegaGen will invest the majority of the proceeds to expand its domestic and international implant business and the worldwide promotion of its digital dentistry platform, according to Straumann.
The Korean company offers a range of cost-effective implant systems, digital dentistry offerings, regenerative tools, and products to support implant procedures. In 2013, MegaGen generated global revenues of more than $30 million, almost two-thirds of which were in Asia/Pacific. The company's products are also sold through distributors in Europe and North America, as well as in emerging markets such as Russia, China, Taiwan, Southeast Asia, and the Middle East.
The two companies will continue to operate separately as different brands with their own philosophy, sales force, production, and value proposition, reflecting the multibrand strategy that Straumann is already implementing with Neodent, Medentika, Dental Wings, and Createch.
