Sirona Dental and Dentsply to Combine
Dental-products companies and Dentsply International Inc. have agreed to combine in a stock-swap transaction billed as a merger of equals.
The companies said Tuesday that Dentsply shareholders will own 58% of the combined business. The merged entity will have an implied pro forma equity value of about $13.3 billion.
Before the deal announcement, Sirona had a market value of about $5.55 billion, while Dentsply was valued at about $7.6 billion.
York, Pa.-based Dentsply and Sirona said the deal will form the world’s largest maker of dental products and technologies, and will help them capitalize on growth trends including a move toward “digital dentistry.”
Jon Santemma, Global Head of Healthcare Investment Banking at Sirona’s adviser Jefferies LLC, said the deal is “the largest M&A transaction in the dental space ever.”
Sirona stockholders will get 1.8142 of a Dentsply share for each Sirona share. Based on 4 p.m. stock prices, the deal values Sirona at about $98.60 per share. The shares closed at $99.31, up $1.22. In after-hours trading, Sirona was up four cents while Dentsply fell 5.8%.
Sirona President and Chief Executive Jeffrey T. Slovin will be CEO of the merged company. Dentsply Chairman and Chief Executive Bret Wise will be executive chairman.
The transaction is projected to result in annual pretax savings of $125 million by the third year after closing, which is expected in the first quarter of calendar 2016.
Dentsply posted lower second-quarter revenue amid currency headwinds, but said on July 30 that it had strong momentum and increased its full-year earnings guidance to $2.54 to $2.62 a share from $2.50 to $2.60. The company said the merger will add to adjusted earnings per share within the first year.
Sirona reported higher revenue and earnings for its third quarter ended June 30 and reaffirmed earnings guidance for the year. Sirona’s products include CAD/CAM restoration systems, X-ray products, dental chairs and instruments.
Sirona was spun off from Siemens AG in 1997 and merged with Schick Technologies Inc. in 2006. The company develops and manufactures the majority of its products in Bensheim, Germany, and its U.S. headquarters is in Long Island City, N.Y.
Dentsply provides consumable health care products for dental and other health care markets. Its brands include Cavitron, Nupro and Rinn.
Dentsply had net sales of $2.92 billion last year. Sirona reported revenue of $1.17 billion for the year ended Sept. 30, 2014, and previously projected organic local-currency growth of 6% to 8%.
Write to Josh Beckerman at josh.beckerman@wsj.com
By Josh Beckerman
Sirona Dental and Dentsply to Combine
The companies said Tuesday that Dentsply shareholders will own 58% of the combined business. The merged entity will have an implied pro forma equity value of about $13.3 billion.
Before the deal announcement, Sirona had a market value of about $5.55 billion, while Dentsply was valued at about $7.6 billion.
York, Pa.-based Dentsply and Sirona said the deal will form the world’s largest maker of dental products and technologies, and will help them capitalize on growth trends including a move toward “digital dentistry.”
Jon Santemma, Global Head of Healthcare Investment Banking at Sirona’s adviser Jefferies LLC, said the deal is “the largest M&A transaction in the dental space ever.”
Sirona stockholders will get 1.8142 of a Dentsply share for each Sirona share. Based on 4 p.m. stock prices, the deal values Sirona at about $98.60 per share. The shares closed at $99.31, up $1.22. In after-hours trading, Sirona was up four cents while Dentsply fell 5.8%.
Sirona President and Chief Executive Jeffrey T. Slovin will be CEO of the merged company. Dentsply Chairman and Chief Executive Bret Wise will be executive chairman.
The transaction is projected to result in annual pretax savings of $125 million by the third year after closing, which is expected in the first quarter of calendar 2016.
Dentsply posted lower second-quarter revenue amid currency headwinds, but said on July 30 that it had strong momentum and increased its full-year earnings guidance to $2.54 to $2.62 a share from $2.50 to $2.60. The company said the merger will add to adjusted earnings per share within the first year.
Sirona reported higher revenue and earnings for its third quarter ended June 30 and reaffirmed earnings guidance for the year. Sirona’s products include CAD/CAM restoration systems, X-ray products, dental chairs and instruments.
Sirona was spun off from Siemens AG in 1997 and merged with Schick Technologies Inc. in 2006. The company develops and manufactures the majority of its products in Bensheim, Germany, and its U.S. headquarters is in Long Island City, N.Y.
Dentsply provides consumable health care products for dental and other health care markets. Its brands include Cavitron, Nupro and Rinn.
Dentsply had net sales of $2.92 billion last year. Sirona reported revenue of $1.17 billion for the year ended Sept. 30, 2014, and previously projected organic local-currency growth of 6% to 8%.
Write to Josh Beckerman at josh.beckerman@wsj.com
By Josh Beckerman
Sirona Dental and Dentsply to Combine
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