Dentsply Announces Agreement to Acquire Astra Tech from AstraZeneca for $1.8 Billion
BY MATTHEW JAFFE, JUNE 22, 2011
Dentsply has signed a definitive agreement to acquire Astra Tech at a valuation of $1.8 billion, approximately 3.4x 2010 sales. They will finance the transaction with cash on hand, commercial paper and long-term debt and expect the deal to close before the end of 2011. Morgan Stanley acted as financial advisor to Dentsply.
The company states that the acquisition of Astra Tech will increase revenue by 25% and double their position in dental implants while expanding their dental portfolio. Dentsply will become the third-largest dental implant manufacturer worldwide, and the company adds that Astra Tech’s Atlantis CAD/CAM offering will help accelerate their shift to digital solutions. The deal should increase Dentsply’s adjusted earnings per share by $0.12 to $0.17 in the first year following the close and $0.30 to $0.40 per share in the third year.
Astra Tech, a subsidiary of AstraZeneca, develops, manufactures and markets in two divisions: Astra Tech Dental, whose products include dental implants and implant abutments; Astra Tech Healthcare, which produces consumable medical devices in urology and surgery market segments.
