AstraZeneca sells its med tech arm to Dentsply for $1.8 billion in cash | Deals Roundup

June 23, 2011 by MassDevice staff

Dentsply picks up AstraZeneca's medical device arm for $1.8 billion, expects to become the third biggest dental device distributor in the world.


AstraZeneca plc (NYSE:AZN) announced that it signed a definitive agreement to sell its medical device arm, Astra Tech, to dental device maker Dentsply International Inc. (NSDQ:XRAY) for $1.8 billion in cash.

The merger will put Dentsply in the top three for dental implant market share, according to a company release.

Astra Tech, headquartered in Mölndal, Sweden, has two main device divisions: one in dental implants and one in urology and surgery. The company recorded worldwide revenue of $545 million in 2010.

AstraZeneca announced that it would unload its devices unit in April and set a starting bid at $2.13 billion. Straumann Holding AG (SWF:STMN) and Nobel Biocare Holding AG (VTX:NOBN) dropped out early in June.

York, Pa.-based Dentsply expects the deal to add between 12 and 17 cents per share to its profit in the full first year after the deal closes, according to the release.

Dentsply's stock closed at $38.32 after the announcement yesterday, a 1.9 percent increase over the previous day's close, but was back down to $37.80 at the end of the day today.