Danaher has entered into a definitive transaction agreement to acquire dental implant maker Nobel Biocare Holding for approximately 2.0 billion Swiss francs ($2.14 billion U.S.).
Danaher announced on Monday an all-cash public tender offer for all publicly held registered shares of Nobel Biocare Holding for 17.10 Swiss francs ($18.28) per share. Nobel Biocare's Board of Directors is recommending to its shareholders to accept the offer.
With the addition of Nobel Biocare, Danaher will have dental sales approaching $3 billion, according to a press release by the companies. Dental implants are a $3.5 billion market with long-term growth, including an aging population, growing income in high-growth markets, and low penetration rates of dental implants worldwide, they noted.
Nobel Biocare will operate as a standalone company within Danaher's dental platform, maintaining its own brand and identity, according to the companies. Implant Direct will remain as a standalone joint venture with no change in its marketing strategy.
Danaher's dental platform reaches 99% of all dental practices through a network of dealer partners and direct sales. It will continue working with its distribution partners and direct sales to maximize market access for its brands.
"We will continue to invest in a wide range of dental technologies and innovations to better serve our customers," said Henk van Duijnhoven, senior vice president of Danaher's dental platform, in the release. "Bringing Nobel Biocare's deep expertise in implant dentistry, digital prosthetics, and software solutions together with our extensive knowledge in 3D imaging, intraoral scanning, and digital restorative solutions will further enable us to optimize and integrate workflows. This will lead to better clinical outcomes, shorter treatment times, and fewer office visits to the benefit of patients and dental practitioners. This combination will further support our business strategy and position our dental business for future growth."
Nobel Biocare is based in Zurich and employs 2,500 people worldwide. The company had revenue of $733.5 million in 2013. In the second quarter of 2014, it had revenue of $366.4 million, a 2.2% increase compared with the same quarter the previous year, and net profit was up 34% to $36.9 million.
