US healthcare conglomerate Danaher Corp to buy Nobel Biocare Holding AG for $2.2 bn
15 September 2014
US healthcare conglomerate Danaher Corp will buy Nobel Biocare Holding AG for an agreed $2.2 billion, which would include debt, to expand in the global dental industry.
Danaher said today it would pay 17.10 Swiss francs per Nobel Biocare share in cash, which worked out to around 23 per cent above Nobel Biocare's closing price on 28 July, the day before the Swiss firm said it was in talks with potential buyers.
Nobel Biocare's shares were down 5.5 per cent in early trade after analysts had said the company could fetch a price of over 20 francs per share.
According to analysts at Bank of America Merrill Lynch, it was not likely that a counter bid would materialise since fellow dental implant makers Straumann and Dentsply had already ruled out interest.
With the acquisition of the world's second-biggest dental implant maker, Danaher would get a premium range of implants expand its orthodontics and digital imaging systems and increase its dental business to around $3 billion in sales.
"This combination will help us build a strong platform for future growth," said Henk van Duijnhoven, senior vice president of Danaher's Dental segment in a statement.
The Nobel Biocare deal follows a wave of mergers among medical supplies makers this year. Fellow dental implant maker Zimmer Holdings Inc, in April, agreed to the acquisition of Biomet Inc for over $13 billion.
Mergers and acquisitions are a key part of Danaher's growth strategy; since it was founded ion 1984, the company has acquired 400 businesses.
In a press release Danaher said "Danaher Corporation has entered into a definitive transaction agreement with Nobel Biocare Holding AG pursuant to which Danaher Corporation or one of its direct or indirect subsidiaries will commence a tender offer for all publicly held registered shares of Nobel Biocare in an all-cash transaction valued at approximately $2.2 billion.
The deal is expected to widen Danaher's market presence in the global dental industry and allow Nobel Biocare to accelerate its strategic objectives and future growth.
Under the terms of the agreement, Danaher will commence a voluntary all-cash public tender offer of CHF 17.10 per Nobel Biocare share to purchase all of Nobel Biocare's publicly held registered shares.
Headquartered in Zurich, Switzerland, Nobel Biocare is a world leader and pioneer in the field of innovative implant-based dental restorations and currently serves customers in 80 markets globally. The company's portfolio of solutions includes dental implant systems, high-precision individualised prosthetics, biomaterials and digital diagnostics, treatment planning and guided surgery.
In 2013, Nobel Biocare generated annual revenues of €567 million (approximately $750 million based on 2013 calendar year-end exchange rates).
Nobel Biocare would become part of Danaher's $2.2 billion Dental segment and complements Danaher's position in the implant industry.
Henk van Duijnhoven, senior vice president of Danaher's Dental segment, said, "Nobel Biocare has a very strong track record as an innovator and leader in the attractive market for dental implant and prosthetic solutions. 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."
Danaher's president and CEO, Thomas P Joyce, Jr, said, "Nobel Biocare's broad reach and leadership position make it one of the strongest global brands in the dental industry today. We believe that application of the Danaher Business System will provide Nobel Biocare with a unique opportunity to further accelerate growth, expand margins, strengthen its market presence and develop innovative solutions for dental patients and practitioners around the world."