Danaher To Acquire Nobel Biocare For $2.2 Billion
By Jof Enriquez,
Follow me on Twitter @jofenriq
Danaher Corporation, an American conglomerate that makes products for industrial and consumer markets, is set to purchase Swiss dental implant manufacturer Nobel Biocare for $2.2 billion in an all-cash transaction.
Under the terms of the deal, Danaher will pay 17.10 Swiss francs per Nobel Biocare share in cash, according to Reuters. The acquisition of Nobel — the second-leading maker of dental implants in the world behind Straumann — will boost Danaher’s dental business sales to up to $3 billion. After completing the deal in late 2014 or early 2015, Nobel will become part of Danaher’s Dental segment. Prior to the announcement, Nobel was reportedly also being targeted by Henry Schein, Dentsply, and EQT Partners.
Danaher president and CEO Thomas P. Joyce told analysts during a conference call that Nobel was acquired because it had invested in “high-growth markets such as China, eastern Europe and Latin America — which now make up about 20 percent of sales,” Reuters reported.
"Nobel Biocare has a very strong track record as an innovator and leader in the attractive market for dental implant and prosthetic solutions,” Henk van Duijnhoven, senior VP of Danaher's dental business, said in a statement. “Bringing Nobel Biocare's deep expertise in implant dentistry, digital prosthetics and software together with our extensive knowledge in 3D imaging, intraoral scanning and digital restorative solutions will further enable us to optimize clinical workflows to the benefit of patients and dental practitioners. This combination will help us build a strong platform for future growth."
In the statement, Danaher said Nobel posted annual revenues of EUR 567 million or $750 million in 2013.
Danaher expects the premium dental implant market to bounce back after years of stagnation and grow between 3 and 5 percent annually in upcoming years as consumer interest in cosmetic dentistry improves in Europe and the United States, according to the Wall Street Journal.
"We're absolutely convinced that the premium market is the place to be," Joyce told analysts during the call, the WSJ said. Citing a report by MarketsandMarkets, the WSJ said that the “dental implant and prosthetics market is estimated to be worth roughly $6.4 billion as of the end of 2013.” The acquisition of Nobel will propel Danaher to the top position in the global dental implants market, according to the WSJ.
An article in Bloomberg reported that Danaher CFO Daniel Comas said during the call that the company is not done dealing, and has earmarked $8 billion for potential acquisitions. Bloomberg also noted that the wave of consolidation in the health products industry has allowed the total amount of transactions to reach $81 billion so far this year — led by Medtronic’s merger with Covidien for $42.9 billion — which is more than double the amount of deals forged in the same period last year.