Astra Sells Dental Unit for $1.8 Billion to Dentsply

[griffmar79]

LONDON—AstraZeneca PLC said Wednesday it agreed to sell its dental implants and medical devices unit Astra Tech to U.S.-based Dentsply International Inc. for $1.8 billion, after a sale process that attracted strong interest from private-equity firms and strategic buyers looking to tap into growth in the dental implants market.
Astra Tech, based in Sweden, was put up for sale late last year by the U.K.-based drug maker and received a series of bids from private-equity firms and medical companies.
The ultimate winner, Dentsply, is one of the world's largest makers of the implants and other dental appliances, and distributes its products in 120 countries. It said buying Astra Tech will lift its revenue by some 25% and be immediately accretive to earnings, while making it the world's third-largest dental implant business.
"The combination more than doubles our position in dental implants while expanding the breadth of our portfolio in this growing segment of dentistry. The urology and surgery business and management team provide us with additional growth opportunities," Dentsply Chief Executive Officer Bret Wise said in a statement.
AstraZeneca CEO David Brennan said the deal was an excellent outcome for AstraZeneca shareholders. "The high degree of interest and the competitive nature of this process is evidence of the value that the employees of Astra Tech have built in the marketplace," he said.
The transaction is expected to close in the second half and will be recorded as a significant item not included in AstraZeneca's core financial earnings, so won't affect the company's existing earnings forecast.
Astra Tech was founded in 1948 and is based in Molndal, Sweden. It has 2,200 employees world-wide. In 2010, it had world-wide revenue of $535 million.
The sale of Astra Tech to York, Pa.-based Dentsply underscores AstraZeneca's intent to focus on its core medicine development as well as increasing returns to shareholders as it heads into a series of patent expiries on some of its biggest selling medicines—including Nexium, for heartburn and stomach ulcers, and Seroquel for schizophrenia and bipolar disorder.
AstraZeneca, formed in 1999 when Astra AB of Sweden and Zeneca Group PLC merged, will retain a large presence in Sweden after the sale, with combined research and development, manufacturing, operational and marketing capabilities in several locations in the country. It has 9,100 staff there, including 900 at Astra Tech. The unit's sale will cut AstraZeneca's staff figure down to 8,200 employees.


What do you guys think?

 

[DMC]

Monster has big appitite.

Needs to feed on small prey.

 

[BobCDT]

I see the Atlantis end going down the toilet.

 

[Doctor.Melon]

Dentsply should have bought 3shape company...don't Astra, they don't know nothing about dental market, neither implants or protheses...they are only looking for money....as allways do. Profit, profit, profit...never think about dental technicians, small clinics or new materials....really Dentsply is the dark side of the bussines, because they want only money....really sad.

 

[harry1]

Not sure about 'don't know nothing about the dental market', speak as I find, have been using Dentsply products for many years, apart from the odd issue as with all companies, generally happy. Currently having quality issue's with other top line tooth brands, chiping etc. Recently moved away from ceramic filled composite premium teeth back to the INPEN teeth from Dentsply. Triad is great for stents, Lucitone still an old favourite, reliable and trustworthy.

Pal has a closed Cercon system, not the best, but easy to use and adequate for his needs. Ti bars from ISUS Compartis are awesome!

 

[TheLabGuy]

I'm curious if this wasn't a way for Dentsply to get the Doctors to send them there chairside scans directly to Atlantis, eliminating the labs. Dentsply is sneaky like that, look how they said they wouldn't advertise Prident to the Docs, but they all know about it don't they? Either way, if this means they jettison Ankylos implants, that's fine with me, might be a great for the bone but once again they failed to think about the lab and the finished product.

 

[Mark Jackson]

Dentsply is the dark side of the bussines, because they want only money....really sad.

I don't know about you, but that's why I'm in BUSINESS. To make money. My product happens to be prosthetics, but at the end of the day, our success is measured in profit. I'm not so sure how they are going to make any money on this deal, and frankly, I think they will cut so much fat off the thing, it will become a bare bones supplier, not an innovator, but Astra hasn't really done anything new in years anyway.

If anything it will give the upstarts like Glidewell more opportunity to succeed. It's all good as far as I'm concerned.

 

[Doctor.Melon]

I agree with you, everybody need money. However as a small piece of the chaine, am I, I expect much more about the big companys like Dentsply. To be honest following this way our bussines will finish soon. In my opinion they want to sell directly to the dentist and following this way only big labs and manufacturers will survive.
Thousand small labs will die next ten years and big companys doesn't mind.
That's the big problem, maybe no for you.