Dentsply to Acquire Sirona Dental for $5.5 Billion

Two of the biggest makers of dental products said on Tuesday that they had agreed to combine, betting on bigger scale to take advantage of growing demand for dentistry work.

Dentsply said it would acquire Sirona Dental Systems for $5.5 billion in what the two companies called a merger of equals that would create a dental health giant with a combined market value of about $13.3 billion.

Together, they have about $3.8 billion in sales and $900 million in adjusted earnings before interest, taxes, depreciation and amortization.

By combining, the companies said, they will become a one-stop shop for a host of dental products, including new automated dental equipment and other services.

“We are excited about bringing together two industry leaders,” Bret W. Wise, Dentsply’s chairman and chief executive, said in a statement. “Dentsply Sirona will offer a comprehensive line of solutions to more effectively meet the needs of dental customers all over the world and advance patient care.”

Under the terms of the deal, Dentsply will issue 1.8142 new shares in itself for each existing Sirona share. Based on Dentsply’s closing price on Tuesday, $54.35, that amounts to $98.60, just less than Sirona’s closing price, $99.31.

The companies said that the stock exchange ratio represents an at-market price based on the past 20- and 30-day average volume-weighted trading prices for each of them.

The merger is expected to save at least $125 million annually by the third year after the transaction is complete.

After the deal is closed, which is expected to be by the end of March, Dentsply shareholders will own 58 percent of the combined company, which will be called Dentsply Sirona. The combination is subject to the approval of regulators and shareholders of each company.

Sirona’s chief executive, Jeffrey T. Slovin, will hold that post in the new company. Mr. Wise will become executive chairman.

The merged company will have headquarters in York, Pa., where Dentsply is based. Sirona is based in New York.

The investment bank Moelis & Company and the law firm Skadden, Arps, Slate, Meagher & Flom advised Dentsply, while the bank Jefferies and the law firm Latham & Watkins advised Sirona.

Source: http://www.nytimes.com/2015/09/16/business/dealbook/dentsply-to-acquire-sirona-dental-for-5-5-billion.html?_r=0

In other dental news: Aurident is proud to offer the Optimet-DS 6000 Advanced Dental Lab Scanner and Exocad software. Easy-to-Use, Fully-Automatic, High-Accuracy 3-D Scans for All Dental Applications. Call us at (800) 422-7373 for more details.