Danaher Corporation (DHR) recently revealed that it has signed a definitive agreement for the acquisition of Nobel Biocare Holding AG. Valued at about $2.2 billion, the deal is expected to close late 2014 or early 2015.
Per the agreement, Danaher will purchase Nobel Biocare’s shares for CHF 17.10 a share, subject to shareholders’ approval. The offer marks a 23% premium to Nobel Biocare’s closing price on Jul 28 or a 28% premium on the 60-day volume-weighted average price on Jul 28.
Based in Kloten, Switzerland, Nobel Biocare specializes in providing novel restorations regarding dental implants. With a footprint across 80 markets worldwide, the company’s solutions range from dental implant systems and high-precision individualized prosthetics to biomaterials and digital diagnostics. This apart, the company also caters to the requirements of treatment planning and guided surgeries for its patients.
The acquisition is likely to augment Danaher's presence across the global dental industry. Nobel Biocare's prowess in arenas of dental implants, digital prosthetics and software solutions will adequately complement Danaher Dental segment’s strength in 3D imaging, intra-oral scanning and solutions for digital restoration. On the other hand, Nobel Biocare will achieve accelerated growth under Danaher’s evolving operating culture – Danaher Business System (DBS). In 2013, Nobel Biocare had generated revenues of approximately €567 million ($750 million). The integration of these two companies is not only expected to benefit both dentists and patients, but will also create a stable foundation for driving future growth.
Danaher currently has a Zacks Rank #3 (Hold). Some other stocks worth considering in the same sector include ITT Corp (ITT), Federal Signal Corp. (FSS) and HD Supply Holdings, Inc. (HDS). All three stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment