Straumann Buys 49% of Brazil's Neodent for $275M
Posted on May 21, 2012
ZURICH (MarketWatch) -- Straumann Holding AG Wednesday said it had paid 260 million Swiss francs ($275 million) in cash for a 49% stake in Brazilian dental implant maker Neodent, to gain a leading position in the world's second-biggest dental implant market and expand in Latin America.
Straumann, the world's largest dental implant maker by sales, is targeting growing markets in Asia and Latin America as it seeks to gain market share and boost sales of recently-launched products.
The agreement also provides Basel, Switzerland-based Straumann with options to increase its stake in privately-held Neodent to 100% over the next six years, it said in a statement.
"Neodent is a leading brand in one of the world's most attractive and dynamic tooth replacement markets," said Straumann Chief Executive Beat Spalinger. "The Neodent brand offers access to a huge market segment, and with this acquisition Straumann can unlock the full potential of the South American markets," he said.
Straumann, which will present its 'Vision for 2020' at its capital markets day, said it should be able double its present size by 2020, both in terms of net revenue and employees.
"The group also assumes it will be able to deliver attractive profit levels with a gross margin in the range of 76%-78% and an operating margin of up to 25% in 2020," it said.
The stock closed at CHF146.60 Tuesday, for a year-to-date decline of 10%.
Company Web Site: http://www.straumann.com