The Danaher Corporation will spin off its dental segment, which includes Nobel Biocare, Ormco, and KaVo Kerr, into an independent, publicly traded company known as DentalCo. The transaction will be tax-free for Danaher shareholders and is expected to be completed in the second half of 2019.
“We believe that our dental business can be more effective as a standalone company, with greater focus around both organic and inorganic investment opportunities,” said Thomas P. Joyce Jr, Danaher president and chief executive officer.
“Through recent growth investments and productivity initiatives, combined with the team’s strong commitment to continuous improvement and the Danaher Business System, the dental segment is in a better position today to accelerate its growth trajectory, drive continued margin expansion, and pursue M&A opportunities,” Joyce said.
Amir Aghdaei will be president and chief executive officer of DentalCo upon completion of the transaction. He also will join DentalCo’s board of directors. Aghdaei joined Danaher in 2008 and currently serves as group executive with responsibility for the dental segment.
“I am incredibly honored and excited to lead our dental business as a standalone public company. Our team’s commitment to execution and continuous improvement provide a strong foundation for meaningful value creation going forward,” said Aghdaei.
Danaher’s dental segment generated nearly $3 billion in revenue in 2017 and is expected to have an investment-grade credit rating and a global team of about 12,000 associates. The spinoff’s completion is subject to the satisfaction of closing conditions, final approval from the company’s board, completion of financing, receipt of tax options, and regulatory approvals.