NEW YORK (The Deal) -- Washington D.C. medical and industrial conglomerate Danaher (DHR) on Monday unveiled an agreed 2.1 billion Swiss francs ($2.25 billion) public offer for Swiss dental prosthetics and implant maker Nobel Biocare, demonstrating new CEO Thomas Joyce's determination to extend his company's consolidator history.
Danaher said it would pay Sfr17.10 per Nobel share, a 5.5% discount to the stock's Friday close.
Nobel admitted July 29 it had been approached by an unnamed suitor - reportedly Swedish buyout shop EQT Partners AB. The deal, which Danaher said has an enterprise value of $2.2 billion, offers a 23.5% premium to the stock's close July 28.
"Bringing Nobel Biocare's deep expertise in implant dentistry, digital prosthetics and software together with our extensive knowledge in 3D imaging, intraoral scanning and digital restorative solutions will further enable us to optimize clinical workflows to the benefit of patients and dental practitioners," said Danaher dental unit senior vice president Henk van Duijnhoven in a statement.
Joyce became Danaher president and CEO Sept. 2, replacing H. Lawrence Culp, who has taken an advisory role and will leave the company on March 1 after 13 years at the top. Culp had promised to "write a few more checks" after announcing his resignation on April 21 but only pulled off one major deal, a $1.3 billion agreement for Siemens AG's hospital information systems unit via Danaher's Cerner Corp.
Danaher has been a consolidator of healthcare and manufacturing assets since its early days as a platform for 1980s corporate raiders Steven and Mitchell Rales.
Nobel Biocare is based in Zurich and had 283.1 million euros ($366.4 million) in revenue in the second quarter, 2.2% more than in the same quarter a year earlier. Net profit rose 34% to 28.5 million euros. It employs 2,500.
Danaher expects to launch the offer on Oct. 16 and to close the deal by "late 2014 or early 2015," according to Nobel.
"We believe that the offer recognizes the strategic value of Nobel Biocare and delivers a considerable cash premium to our shareholders. We view Danaher as the ideal strategic partner for the sustainable development of Nobel Biocare," said Nobel Chairman Rolf Watters in a statement.
Nobel shares slid 5.8%, or Sfr1.05, to Sfr17.05, indicating that investors expect the deal to succeed at the current offer price.
Goldman Sachs Group Inc. is financial adviser to Nobel.