Investing.com -- DENTSPLY International Inc (NASDAQ:XRAY) and Sirona Dental Systems Inc (NASDAQ:SIRO) approved a $13.3 billion merger on Tuesday afternoon in a deal that will create the largest manufacturer of professional dental products and dental technologies ever.
Under the agreement, Sirona shareholders will receive 1.8142 shares of DENTSPLY for each existing Sirona share, the companies said in a joint statement. If the deal is approved, DENTSPLY shareholders will own 58% of the company, while Sirona shareholders will own the remaining 42%. The stock issuance is expected to be tax-free for shareholders of both companies.
DENTSPLY, a York, Pennsylanvia-based manufacturer of dental and other medical device products, has global operations in more than 120 countries. Sirona, which is based in Long Island, markets a wide array of dental products, including dental treatment centers, digital, panoramic and 3D imaging systems and a host of restoration systems. Sirona CEO Jeffrey Slovin will serve as the president and CEO of the new company and a member of the Board of Directors, while DENTSPLY CEO Brent Wise will serve as the Executive Chairman of the combined company.
"This is an exciting day for both companies, for the dental community and for patients around the globe. We are bringing together two world class companies that share a culture of innovation and will foster the development of differentiated, integrated solutions for general practitioners and specialists, particularly in the highest growth segments of the dental industry," Slovin said in a statement.
"Combining Sirona's proven digital solutions and equipment with DENTSPLY's leading consumables platform creates the most comprehensive dental solutions offering available to meet customer demand in every key segment. I look forward to leading the talented teams of both Sirona and DENTSPLY as we drive the global digitization of dentistry, offer superior solutions to customers and patients and create The Dental Solutions Company."
The companies expected to earn revenues of nearly $4 billion and adjusted EBITDA of more than $900 million.
"We are excited about bringing together two industry leaders. 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," Wise said in a statement.
"With a strong financial profile, comprehensive product offerings and integrated solutions, DENTSPLY SIRONA will be uniquely positioned to deliver attractive returns for our shareholders and make dentistry better, faster and safer around the world. I look forward to working with Jeff and the combined management team to deliver on this mission."
Shares in both companies rose by more than 1% during Tuesday's session, before trading was halted in after-hours trading.