Dentsply, an American dental equipment maker and dental consumables producer, just announced that it will undergo a merger with another dental-related company, Sirona.
As reported by EIN News, the merger between Dentsply and Sirona will create a complementary end-to-end solutions that will meet customers' needs and improve patient care.
Announced on September 15, the board of directors of both company have unanimously approved a definitive merger agreement in which, the companies will be combined in an all-stock merger of equals.
According to Reuters, under the terms of agreement, shareholders of Sirona will receive 1.8142 shares of Dentsply, for each of their existing Sirona share.
Dentsply's closing price, based on Tuesday, will amount to $98.60, a little bit less than Sirona's closing price of $99.31.
Dentsply shareholders will own 58 percent while Sirona will own 42 percent of the combined company. The stock issuance of the said merger is expected to be tax-free to both shareholders of the company.
As reported by The New York Times, the company has about $3.8 billion in sales and $900 million in adjusted earnings before interest, taxes, depreciation and amortization.
Apart from complementary end-to-end solutions, meeting customers' needs and improved patient care, the merger will also make the company a one-stop shop for a variety of dental products, including new automated dental equipment.
"We are excited about bringing together two industry leaders," said Bret W. Wise, Dentsply's chairman and chief executive.
Wise further added "Dentsply Sirona will offer a comprehensive line of solutions to more effectively meet the needs of dental customers all over the world and advance patient care."
The deal for Sirona and Dentsply's merger is expected to be completed by the end of March. The merger is also expected to save at least $125 million annually by the third year.
Sirona's chief executive, Jeffrey T. Slovin also announced that Dentsply's Bret W. Wise will serve as executive chairman.
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