In an effort to expand its foothold in international markets,
DENTSPLY International Inc.
) announced twin acquisitions of dental companies based in Hong
Kong and New Zealand. No further details of the deals were
disclosed by the company.
ALIGN TECH INC (ALGN): Free Stock Analysis
MCKESSON CORP (MCK): Free Stock Analysis
MERIT MEDICAL (MMSI): Free Stock Analysis
DENTSPLY INTL (XRAY): Free Stock Analysis
To read this article on Zacks.com click here.
DENTSPLY has already closed the acquisition of QAHR, a direct
dental selling company. QAHR is headquartered in Hong Kong with
operations spread across mainland China. Since 2000, XRAY has
been associated with certain dental implant brands of QAHR.
DENTSPLY forged a second agreement to buy certain assets of New
Zealand-based Triodent. Triodent produces professional dental
consumables used in restorative dentistry and is also renowned
for its unique sectional matrix system.
Both the companies together generate about $30 million of
revenues annually. Given the existing commercial relationship
with the two companies, the acquisitions are expected to boost
XRAY revenues by about $15 million each year.
The buyouts of QAHR and Triodent conform to DENTSPLY's recent
strategy to expand via accretive acquisitions. The company's
indebtedness had increased significantly since it acquired Astra
Tech in 2011. Since then, it had refrained from entering into
major deals. However, with recent visible trends of decreasing
debt levels, the company has once again returned to its earlier
Moreover, given the ongoing difficult dental market condition in
Europe, we believe that XRAY's initiative to grow its business in
the 'Rest of World' segment should help lift up its dwindling
In the last reported quarter, DENTSPLY's net revenues inched up
1.2% to $704.0 million but lagged the Zacks Consensus Estimate of
$716 million. In constant currency, net sales grew 2.7%,
excluding precious metals content, indicating strong internal
growth in the U.S. and Rest of World geographic regions, and
continued sluggish internal growth in Europe.
DENTSPLY presently sports a Zacks Rank #2 (Buy). Other players in
the Medical/Dental Supplies industry, which look attractive at
current levels, include
Merit Medical Systems, Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).