Israeli dental implant firm AlphaBioTec Ltd has signed an agreement to be bought by Swiss giant Nobel Biocare. Nobel Biocare will buy all outstanding shares in the company for a consideration of US$95 million.
With this acquisition, Nobel Biocare says it will reinforce its leading position by gaining immediate access to some of the fastest-growing market segments in implant dentistry, such as orthodontic mini-screws and small diameter implants. At the same time, the company will gain market leadership position in Israel and further expand its position in Russia, Poland and Latin America.
Petah-Tikva based AlphaBioTec claims a 60% share of the dental implant market in Israel. AlphaBioTec products are also sold in more than 40 countries, and its export business has been growing at more than 35% over the past several years, reaching Eastern Europe, Russia, India, Korea and Latin America.
Nobel Biocare will retain all of AlphaBioTec's more than 120 employees. Ophir Fromovich, the current owner and CEO, will become chairman of the board of AlphaBioTec and act as an advisor to Nobel Biocare. AlphaBioTec is expected to continue to expand its production operations in Israel.
Nobel CEO Domenico Scala said, ``This acquisition expands Nobel Biocare's leading position by allowing us to enter new and fast-growing market segments. AlphaBioTec's leading position in Israel, its attractive pipeline and strong innovation skills with excellent people will complement our innovation capabilities.''
The acquisition will be paid in cash and existing Nobel Biocare shares. The transaction is expected to close in the second quarter of 2008 and be accretive from the first year.
Zurich-based Nobel Biocare has over 2,200 employees and recorded revenue of 601 million euros in 2006. Nobel Biocare has direct sales organizations in 35 countries.
Parent company Nobel Biocare Holding AG has shares listed on SWX Swiss Exchange and OMX Stockholm, Sweden.
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008