Danaher Corp. share price down, to acquire Nobel Biocare in a deal estimated to $2.2 billion

Danaher Corp. revealed that it has reached an agreement over the acquisition of Nobel Biocare Holding AG. The price of the deal is estimated at $2.2 billion, including debt, and comes at a time when health companies are seeking consolidation through mergers and acquisitions in the medical-device sector.

“This combination will help us build a strong platform for future growth,” said Henk van Duijnhoven, Senior Vice President of Danahers Dental segment in a statement, which was cited by Bloomberg.

According to the official statement of Danaher, the company will pay a price of CHF17.10 ($18.30) per share in cash for Nobel Biocare. The acquisition is expected to make the company the biggest dental implants manufacturer in the world. It also said that its takeover offer is about 23% higher than the closing price of Nobel Biocare on July 28th.

The acquisition is expected to help Danaher consolidate its positions in the dental market, although Nobel Biocare is to continue operating as a stand-alone business within its dental platform. The company explained that the board of Nobel Biocare is recommending investors accept the offer.

The acquisition of Nobel Biocare, which is currently the second-largest dental implant maker in the world, is expected to help Danaher boost its positions in the industry of dental implants and extend its portfolio by adding the companys products to its orthodontics and digital imaging systems. The sales of its dental business are expected to increase to about $3 billion.

One of the analysts, who work at Bank of America Merrill Lynch shared that a counter bid of the takeover offer of Danaher is unlikely to be posted, especially considering the fact that fellow dental implant makers Straumann and Dentsply have already said they are not interested in such a deal.

Danaher Corp. fell by 0.52% on Friday in New York to close at $76.88 per share, marking a one-year change of +10.70%. The company is valued at $53.87 billion. According to CNN Money, the 17 analysts offering 12-month price forecasts for Danaher Corp. have a median target of $86.00, with a high estimate of $92.50 and a low estimate of $75.00. The median estimate represents a +11.86% increase from the last price of $76.88.