Enters merger of equals with DENTSPLY (XRAY Updated Trend Analysis); intends to conduct $500M buyback as soon as possible, post close.
Sirona shareholders will receive 1.8142 shares of DENTSPLY for each existing Sirona share. The exchange ratio reflects an “at market” combination based upon the 20 and 30 day average volume weighted trading prices for each company. Upon closing of the transaction, DENTSPLY shareholders will own 58% and Sirona shareholders will own 42% of the combined company. The stock issuance in the merger is expected to be tax-free to shareholders of both companies.
The new company will have net revenue of approximately $3.8 billion and adjusted EBITDA of more than $900 million on a pro forma basis for the last twelve months.
Jeffrey T. Slovin, President and Chief Executive Officer of Sirona, will serve as Chief Executive Officer of the combined company and will be a member of the Board of Directors.
Bret. W. Wise, Chairman and Chief Executive Officer of DENTSPLY, will serve as Executive Chairman of the combined company.
The combined company will be called DENTSPLY SIRONA and trade on the NASDAQ under the symbol XRAY (XRAY Updated Trend Analysis).
DENTSPLY SIRONA (XRAY Updated Trend Analysis) intends to execute a $500 million share buyback as soon as possible after closing to drive incremental shareholder value. The new company plans to maintain DENTSPLY’s current dividend level of $0.29 per share. The combination of DENTSPLY and Sirona is expected to deliver $125+ million of annual pre-tax synergies by the third year following the completion of the transaction. The new company plans to achieve meaningful cost and revenue synergies by capitalizing on a broadened product offering, expanded customer base and scalable infrastructure. The combination is expected to unlock significant shareholder value and be accretive to each company’s shareholders on an adjusted earnings per share basis within the first year.
The transaction is expected to be completed in the first quarter of calendar 2016.
September 21, 2015: DENTSPLY International Inc (XRAY Updated Trend Analysis) William Blair Raised XRAY to Outperform from Market Perform.
September 18, 2015: DENTSPLY International UPDATE: Northland Capital Raised XRAY to Outperform from Market Perform
September 16, 2015: DENTSPLY International (XRAY Updated Trend Analysis) Baird Raised XRAY to Outperform from Neutral.
September 16, 2015: DENTSPLY International (XRAY Updated Trend Analysis) Barrington Raised XRAY to Outperform from Market Perform, price target: $60.