Dental technology leader
Sirona Dental Systems, Inc.
) recently announced the expansion of its exclusive distribution
Patterson Companies, Inc.
Following the amendments, Patterson Companies has become the
exclusive U.S. distribution partner for all Sirona products with
immediate effect. Patterson Dental, the largest business unit of
Patterson Companies, will be the specialty distributor for
The agreement provides Patterson Companies with the exclusive
U.S. distribution rights for all products manufactured by Sirona.
The other distribution dealers associated with Sirona as of June 1,
2012 will continue to receive equipment only until September 1,
2012. However, these dealers can order spare parts for Sirona
products for an indefinite time.
Management at Sirona asserts that the expansion of its exclusive
distribution agreement with Patterson will improve the company's
marketing management by strengthening its go-to-market strategy.
The main focus of this perennial agreement is to expand its
presence in the U.S. market and thereby increase revenues.
Management also believes that the company is well poised for
continued growth in the long run, given its worldwide sales and
Sirona posted revenues of $231.9 million (up 8% year over year)
in the second quarter of fiscal 2012. Revenue in the U.S. increased
4.9% whereas revenues outside the U.S. were up 9.2% (up 13.7% in
constant currency terms). The outside revenue growth was boosted by
strong sales, specifically in the Asia Pacific.
Sirona is well placed in the international market with
Henry Schein, Inc.
) being its principally largest distributor and core partner in
Europe. Henry Schein is a global supplier of healthcare products
and services to healthcare practitioners based in offices. It
operates in the medical, dental and veterinary verticals. Henry
Schein is also Sirona's major partner in Canada.
Sirona is a leading innovator and manufacturer of dentistry
products. The company directly competes with
DENTSPLY International Inc.
Sirona currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating.
HENRY SCHEIN IN (HSIC): Free Stock Analysis
PATTERSON COS (PDCO): Free Stock Analysis
SIRONA DENTAL (SIRO): Free Stock Analysis
DENTSPLY INTL (XRAY): Free Stock Analysis
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