Overview of the Dental Products MarketJanuary 2010 Brocair Partners Industry Survey Series Brocair Partners | 317 Madison Avenue | 21st Floor | New York NY 10017 | Phone: 212.500.5015 | www.brocair.com ................................................................... Market Overview......................................................................................................... Comparable Company Analysis................. Brocair Contact Information............................................................. Sources for information within the report include Capital IQ. Comparable Transaction Analysis............ This report does not constitute an offer or invitation to purchase assets or securities of any kind in the companies described herein......... Profiles of Select Participants in the Dental Products Market.............................................................Table of Contents 1.............15 7......................................................................................................................................................................................................................................................................................................................................................... ................ Dental Products Index..................................1 2.......... Google Finance.....11 6..................................... and company websites............. Brocair Partners is an affiliate of Billow Butler & Company........................................................................................ This report is being furnished to you for informational purposes only and on the condition that it will not form the basis for any investment decision............... Brocair Partners makes no recommendation whatsoever of the merits of any investment in any company listed in this report.................................................................................................................................................................................................................................. This document should not be in any way construed as providing investment advice or investment services......................................................................................16 8............................................17 Disclaimer This report has been exclusively prepared by Brocair Partners LLC (“Brocair Partners”)....................10 5................ Member FINRA............................................................................................ .................................................................................................. LLC............................... Disclaimer.....3 3.................. Dental Products Competitive Matrix............................................................................................... Please see page 16 for full disclaimer.............5 4... public company filings..... Brocair Partners does not provide any warranty or make any representation of the correctness or the completeness of any information provided....................................... November 2007. Dental Expenditures Numbers in Billions USD 140 120 100 80 60 40 20 0 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 The U. Market Overview The dental products market encompasses products for the diagnosis. periodontics. Currently.1 . an increased desire for aesthetics. and Patterson Companies. the U. In 2008. Inc. The U. 180 160 U. 3rd Edition. This segment is expected to grow at a compound annual growth rate of 16. 1 American Dental Association. include Henry Schein. November 2008.S. “Implant-Based Dental Reconstruction and Bone Graft Markets”. “European Dental Implants Markets”. Even though current global economic conditions have impacted the growth of the dental implant market. 2 Kalorama Information. dental products manufacturer industry is more fragmented. oral pathology. In 2008.S. from 2003 to 20134. The biggest dental products distributors in the U. 3 Frost & Sullivan. has reached almost $18 billion.S. gums and supporting bone. the global dental products market.7% in the E. September 2009.S. Dental Products Market Update | p.3 percent in the U. endodontics. as well as a greater utilization of dental preventive care. 4 Frost & Sullivan. there are 120. Currently. “U.S.S. while the fastest growing segment in the global dental market is dental implantology. which account for approximately 40% and 32% of the market share respectively. oral and maxillofacial surgery. prosthodontics. The largest segment of the market is restorative and preventive dentistry.4 billion and is expected to grow at about 6 percent annually through 20172.Section 1 | Market Overview 1. pediatric dentistry. treatment and prevention of disease and ailments of the teeth. the long-term growth of the implant industry is very robust. which are supplied by dental distributors. a demographic shift towards an aging population and a desire to retain tooth structure later in life. such as the growth in disposable income.: orthodontics. dental distribution companies as well as dental manufacturers. and oral and maxillofacial radiology1. total dental products and services spending reached $102. Inc. The market has enjoyed a steady growth due to a number of facts.U.S. there are nine recognized dental specialties in the U.000 office-based dental practices. with ten companies accounting for approximately 50% of market share. excluding dental services. Dental Implants Market”.S. dental market structure consists of dentists and their practices. dental public health. from 2004 to 20143 and 13. 5 NorthCoast Research. and cabinetry. Dental Products Market Update | p. digital radiography. labeling. are also subject to foreign government regulation. units.8 0. July 2009. as well as high-tech dental equipment including dental CAD/CAM systems. lights.4 0.8 0. marketing and distribution of such products. and lasers. The dental equipment segment consists of basic equipment such as dental chairs. 3D imaging systems.4 billion5. These include dental sealants. which are comprised of dental sundries and small equipment used in dental offices for the treatment of patients. anesthetics. are safe and effective.6 0. To ensure that dental products distributed in the U. implants and related products. Dental products sold outside the U.2 0.2 0.8 U. Dental Implants Market 1.4 1.8 billion in 20096. ultrasonic scalers and polishers. Dental Industry Report. for example endodontic.2 1.6 1. Market Overview (cont’d) 2.S.8 Numbers in Billions USD European Dental Implants Market 1.0 0. periodontic instruments and materials.2 1. the United States Food and Drug Administration (FDA) regulates the introduction. handpieces. The dental market also includes specialty products for the treatment of specific dental diseases. 6 NorthCoast Research.0 0.0 1.0 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 Other segments include dental consumables. bone grafting materials. manufacture. packaging.6 1.4 1.S.Section 1 | Market Overview 1.2 .6 0.0 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 Numbers in Billions USD 1.4 0. It is estimated that the North American dental consumable market is currently worth $4. orthodontic. July 2009. The North American dental equipment market reached $1. Dental Industry Report. advertising.S. DENTSPLY International. disposables disposables. Inc.) Brasseler USA. Inc.Electro Medical Systems S. Inc. Inc. Cendres+Métaux Holding SA COLTENE Holding AG Danaher Corporation Den-Mat Holdings. L M ab at ia er ls ui Eq pm t en C s on um l ab es do En do n s tic ts / s/ uc cs cs c c i i i d i t t t t e re ro on on he ts rP sm l Ca st plan od od e i o o h r h C ra t Pr Im Pe Ot Or O sterilizers & equipment maintenance surgical kits oral surgery Cadent. Inc. Cantel Medical Corp. GeoDigm Corporation Glidewell Laboratories. infection control hygiene and disinfection oral surgery disposables. Inc. AstraZeneca plc (Astra Tech AB) BioHorizons. infection control Dental Products Market Update | p. Inc. (Biomet 3i. Dental Products Selected Competitive Matrix Table 1: Selected Dental Products Companies Matrix by Product Type Companies A-Dec. Biomet.A. Inc. hygiene infection control.3 . Inc. Inc. Dürr Dental AG EMS . LLC Dental Services Group DentalEZ Group.Section 2 | Competitive Matrix 2. Heraeus Holding GmbH (Heraeus Kulzer) patient simulation disposables. Inc. Biolase Technology. Inc. Align Technology. AFP Imaging Corporation Air Techniques. Nobel Biocare Holding AG Novalar Pharmaceuticals. KG Wieland Dental +Technik GmbH & Co. Inc. Inc. Rauter GmbH & Co. (Paradise Dental Technologies) Planmeca Oy Premier Products Co. Inc. Ranir.4 . LLC Remedent. Inc. disposables Dental Products Market Update | p. Inc. Inc.) L M ab at ia er ls u Eq ip m t en n Co su m l ab es d En od o ic nt s s s s/ ic/ tic tic tic ts n et are n e o o h an m t d d s C o os l rio th Co ral Pr Imp Pe O Or Ot he du ro P r ct s surgical. Inc. Inc. Zimmer Holdings. National Dentex Corporation Neoss Ltd. Inc. maintenance surgical equipment hygiene. Pro-Dex.Section 2 | Competitive Matrix 2. Nakanishi. KG Young Innovations.Dental Products Selected Competitive Matrix (cont’d) Companies Ivoclar Vivadent AG Midmark Corporation Millennium Dental Technologies. Sirona Dental Systems. Straumann Holding AG Vita Zahnfabrik H. Inc. PDT. cleaners hygiene systems oral surgery infection control. (Zimmer Dental. Asia. designs.2 11.186. which is designed for general practitioners for selecting.6) NM 2007A $66. Dental Products Market Update | p.6 (3.6 NM ($3.0%) ($6.5 . • Its products are used by general dentists. a solution for less complex orthodontic cases. 2009 $ in millions Sales Sales growth Location: Irvine.6% Location: Santa Clara.2) NM ($1.8 2005A $207.9% LTM $299.4 $44.8% $43. CA • BIOLASE Technology. • BIOLASE offers its products through direct sales and a network of independent distributors in the United States. Inc.9) NM 2007A $284.0 $1. CA • Align Technology.9 13..4 (0.3) NM 2008A $64. EBITDA Margin Market Cap Enterprise Value* FYE: December 31st LTM: September 30th.2% $1. Invisalign Teen.8 NM $40. Invisalign Express. • Align Technology distributes its products directly to its customers: the orthodontist and the general practitioner dentist (GP).1 2004A $172.4 11.6 ($15. founded in 1997. Inc. the Middle East. and other dental specialists. Europe.4%) ($5. and finishing Invisalign cases.5% ($2.9 6. is the leading dental laser company in the United States and worldwide. which is designed to meet the specific needs of the non-adult comprehensive or teen treatment market. Vivera retainers that offer aesthetic retention solution.7 12.0 2. and Invisalign Assist.5) NM $48.341. founded in 1984.8% $12.1) NM LTM $44.7 2005A $62.4% 2008A $304. The Invisalign system is sold in North America. periodontists.8 15. Profiles of Select Participants in the Dental Products Market Company & Description Key Financial Data $ in millions Sales Sales Growth EBITDA $19. EBITDA EBITDA Margin Market Cap Enterprise Value* FYE: December 31st 2004A $60.2% 2006A $69. and the Pacific Rim countries.9% $36.3 37. including teeth whitening.2% 2006A $206.0 6. • The company’s products include Invisalign Full for the treatment of a range of malocclusions. and markets the Invisalign System for treating malocclusion or the misalignment of teeth. Latin America and Japan. Africa. endodontists. 2009 *Enterprise Value (EV) = Market Capitalization . • The company offers Waterlase systems.cash & equivalents + debt + minority interest + preferred shares Market Capitalization and Enterprise Value as of 1/5/2010.8) NM LTM: September 30th. Europe..Section 3 | Company Profiles 3. Asia-Pacific.9 (4. manufactures.4%) ($12. Latin America. Canada. oral surgeons. monitoring.1 19. a combination of water and laser to perform dental procedures to cut soft and hard tissue plus bone. and Diode systems that use a semiconductor diode laser to perform soft tissue and cosmetic procedures. Profiles of Select Companies (cont’d) Company & Description Key Financial Data $ in millions Sales Sales growth 2005A $187.7% 2008A $2. Inc..3 (27.5 5.7 9.6 .6 20.5% LTM $141.4% 2007A $2. Germany and Hungary. • The company offers high-precision impression materials.0% $220.4% LTM $2.0% $415. impression and restorative materials.0 21.694. including high and low speed handpieces. sealants. as well as equipment. 2009 $ in millions Sales Sales growth Location: York.2 2005A $1. • DENTSPLY’s specialty product line consists of endodontic instruments and materials.6 $5.7% $5.099. is a global leader in dental consumables and small equipment used in dental labs for implant-based therapies and dental reconstructions. diamond and carbide rotary instruments under Coltene/Whaledent brand.4 5. manufacture.9 9. small equipment.1 15.8 NM $21.8% LTM: September 30th.5% $27. 2009 *Enterprise Value (EV) = Market Capitalization . Switzerland • COLTENE Holding AG.3 NM $444. such as dental anesthetics. intraoral curing light systems.7 21.2% 2006A $1. filling materials. engages in the design. implants and related products. endodontic materials and products. treatment auxiliaries. development.1% $469.7 20.715. and marketing of dental products in over 120 countries.6%) $26.307.6% $370.4 17. and ultrasonic scalers.1% $28.3 15.9% 2008A $156. EBITDA EBITDA Margin Market Cap Enterprise Value* FYE: December 31st LTM: June 30th.8 2006A $204. • The company’s dental consumable products include dental sundries. and topical fluoride.642. • COLTENE has state-of-the-art production facilities in Switzerland.1 1. and orthodontic appliances and accessories. bone grafting materials. and porcelain furnaces.0 20.8 $356. tooth whiteners. EBITDA EBITDA Margin Market Cap Enterprise Value* FYE: December 31st 2004A $1.8% 2007A $148.5 17. founded in 1835.Section 3 | Company Profiles 3.9 $250.cash & equivalents + debt + minority interest + preferred shares Market Capitalization and Enterprise Value as of 1/5/2010.193.2 $32. such as computer aided machining ceramic systems.810. founded in 1983. PA • DENTSPLY International. dental diagnostic systems.3 15.009.8 11.2 20. and patient safety and hygiene products.2% $351. Its dental laboratory products comprise dental prosthetics. Dental Products Market Update | p. the United States.0% Location: Dubendorf. porcelain jackets.3% 2006A $150. The company’s cosmetic products consist of porcelain veneers and ceramic crowns. Its restorative products comprise crowns and bridges.7 . it owned and operated 46 dental laboratories.2 (11.4 13. 2008. • It has 6 manufacturing facilities in Sweden.7 11.7% $341.6 34. • The company offers restorative.0 9. 2009 *Enterprise Value (EV) = Market Capitalization . including dental implants.2 NM $213.6 26.5% $16.6% $12. Dental Products Market Update | p.6 24.6% 2007A $972. Japan and Israel.4 22. guided surgery solutions. bridges and laminates.5 $4.3 11. Profiles of Select Companies (cont’d) Company & Description Key Financial Data $ in millions Sales Sales growth 2004A $111. NobelReplace.254.310. marketing.Section 3 | Company Profiles 3. Procera. Reconstructive products consist primarily of partial and full dentures.1% 2008A $865.7% $4.1% FYE: December 31st LTM: September 30th. reconstructive. fabrication. scanners.9% LTM $164.4 36.3 $77. • The company offers various science-based solutions from root to tooth..5 11. and NobelGuide brand names. NobelActive.8% $182.7 12. inlays and onlays.0%) $228. direct sales organizations in 37 countries and distribution network covering more than 70 countries.2% 2007A $170.0 9.5 38.1% $290. MA • National Dentex Corporation. founded in 1982. and biomaterials.0 36. and sale of custom dental prosthetic appliances for and to dentists in the United States.7 0.0% $51.4% Location: Natick.8% $17. NobelSpeedy. ceramic crowns. training and clinically documented treatment concepts.1 10.8 2005A $135.1 $207. the U.cash & equivalents + debt + minority interest + preferred shares Market Capitalization and Enterprise Value as of 1/5/2010. and cosmetic products. provides restorative and esthetic dental solutions worldwide. Switzerland • Nobel Biocare Holding AG.7 35. 2009 $ in millions Sales Sales growth Location: Kloten. Replace Select.4% 2008A $171.S. founded in 2001. • Nobel Biocare provides its products under the Branemark System. • As of December 31.3 NM $18. It also offers individualized prosthetic solutions. engages in the design. EBITDA EBITDA Margin Market Cap Enterprise Value* 2004A $525.2% 2006A $792.4% LTM $860. comprised of 41 full-service dental laboratories and 5 branch laboratories in the United States and Canada.5% $19.8 2005A $574.6 $16. EBITDA EBITDA Margin Market Cap Enterprise Value* FYE: December 31st LTM: September 30th.8 11. and precision crowns.8 21. 5 12. founded in 1986.6 95.Section 3 | Company Profiles 3. and laboratories through an international network of more than 300 distributors. clinics.1 14.8 22.4 23. RemeCure plasma curing light.2) NM 2008A $7.1 2006A $7. a system for the creation and placement of dental bridges and crowns. 2009 *Enterprise Value (EV) = Market Capitalization . FirstFit. Dental Products Market Update | p.0) NM 2007A $6.8) NM Location: Deurle. development. 2009 $ in millions Sales Sales growth Location: Long Island City.8 .7 (9.7% $167.1% 2009A $713. Asia.4 4.4 22.. EBITDA EBITDA Margin Market Cap Enterprise Value* FYE: March 31st LTM: September 30th.2 24.9 13.3% 2007A $659. and instruments. imaging systems. a self-contained whitening system. MetaTray. • The company offers professional dental and retail over-the-counter tooth whitening products.. an ultra thin claddings that are attached to the front of the patient’s teeth.6 18. • The company provides a range of advanced products in four primary areas: dental CAD/CAM systems. RemeWhite in office whitening system.7% ($0.6% 2008A $757.6% $0. NY • Sirona Dental Systems. • The company distributes its products to dental practices. Profiles of Select Companies (cont’d) Company & Description Key Financial Data $ in millions Sales Sales growth 2005A $7. and Remewhite home maintenance kit.1% ($2.6% FYE: September 30th LTM: September 30th.7 ($3. • Distributes its products in more than 35 countries.4 19. and the United States. treatment centers. Belgium •Remedent. Inc.7% $72. a 16 pre-filled trays with whitening agent for home use.7%) ($1.2 NM ($1.8 22.3 NM $176.0% $8. Inc.4% $121. • Professional dental products include GlamSmile.5% 2006A $520.7 $8.789.9 $2. EBITDA EBITDA Margin Market Cap Enterprise Value* 2004A $387. engages in the research.7% $1. founded in 1882.8 2005A $463.8) NM 2009A $14. and distribution of oral care and cosmetic dentistry products in Europe.cash & equivalents + debt + minority interest + preferred shares Market Capitalization and Enterprise Value as of 1/5/2010.8% $148.085. manufacture.6 12.3) NM LTM $12. manufactures and sells high-tech dental equipment for dentists worldwide.9 26.1 $104. 2 $4.8 24. BoneCeramic.9 25. South America. CAD/CAM prosthetics.8% $173.4 30.2% 2006A $491.2 $26.6% 2008A $99.5 36. a solution to promote the predictable regeneration of hard and soft tissues lost due to periodontal disease.4% LTM: September 30th. dental assistants. development.3% $205. practice enhancement products..226. EBITDA EBITDA Margin Market Cap Enterprise Value* FYE: December 31st LTM: June 30th.0% LTM $97.2% $207. and a range of matching precision instruments and handling components.0 NM $211.2 $223.3 35. a synthetic and biocompatible product for bone augmentation procedures.3 $136.8 7.3% $245. and membrane products.0% 2006A $90.3 26. and tissue regeneration products for use in tooth replacement solutions or to prevent tooth loss.6% $24. Profiles of Select Companies (cont’d) Company & Description Key Financial Data $ in millions Sales Sales growth 2004A $368.6% Location: Basel. • Straumann also provides training and education services to the dental profession in collaboration with the International Team for Implantology.6 31. Europe.4 7.7 33. Central America. micro-applicators.cash & equivalents + debt + minority interest + preferred shares Market Capitalization and Enterprise Value as of 1/5/2010. and the Pacific Rim. engages in the research.2 2005A $84. Dental Products Market Update | p. founded in 1954. dental hygienists. 2009 $ in millions Sales Sales growth Location: Earth City.9 16. manufacture. and manufacture of implants. Switzerland • Straumann Holding AG.0 30.3% $24. and endodontic products.8% $4. Canada. engages in the development. • It markets its products primarily in the United States.3 2005A $387.8 25.1 1.Section 3 | Company Profiles 3. 2009 *Enterprise Value (EV) = Market Capitalization .9 . Among consumables. and consumers. the company offers preventive and infection control products. MO • Young Innovations. Its diagnostic products include panoramic X-ray systems and supplies.1 NM $24.1% $26.6% 2007A $97. • The company has two business lines: consumables and diagnostics.0% 2008A $731. prosthetic components. Inc.8 7.3% 2007A $629.7 33.9 29. EBITDA EBITDA Margin Market Cap Enterprise Value* FYE: December 31st 2004A $79.6 5.6% LTM $690. • The company’s tissue regeneration products include Emdogain. • Its products include dental implant system.3 35.8% $23. founded in 1995.359. and marketing of supplies and equipment used by dentists.6 28.2% $135. instruments. which comprises a line of surgical implants. 1 3.2 7.5 1.4 3.0 11.4 3.4 ($0.5 1.2) $4.0 1.7 2.4 NM 14.5 $8.85 $2.01 $36.2 NM 11.4 $220.1 ‘08 32.6 11.9 6.0 9.4 LTM 29.9 $205. Inc.1 Price/Earning ‘07 31.3 *Enterprise Value (EV) = Market Capitalization .8 3.3 4.4 0.7 1.2 NM 25. Nobel Biocare Holding AG Remedent.3 26. Sirona Dental Systems.789.2 $17.1 NM 15.1 20. Net Debt.3 NM 4.8 2.73 $35.8 27.3 ‘08 13.9 2.5 3.0 0.5 5.1 ($154.9 2.3 Price/Sales ‘07 4.6 $51.53 $21.cash & equivalents + debt + minority interest + preferred shares Outliers have been excluded from Mean and Median calculations.10 .1 6.1 2.8 5.0 12.1 26.6 2.0 NM 4.6 15.0 3.3 4.4 EV*/EBITDA ‘07 23.9 0.3 4.30 $36.4 0.98 $53.0 NM 11.52 $25.1 LTM 6.5 0.9 EV*/Net Sales ‘07 3.5 ‘08 13.9 LTM 51.4 9.2 0.09 $36.8 0.0 8. Price $17.20 $9.8 6.310.1 $1.9 0.2 6.7 1.6 $4.1 $8. Inc.3 14.5 ‘08 3.5 ‘08 1.4 24. Straumann Holding AG Young Innovations. Price figures in actual dollars.1 NM 24.4 LTM 6.2 3.359.7 3.1 0.9 6. $1.74 EV* Net Debt Mkt Cap.05 Low $5.7 6.3 Price/Earning ‘07 31.6 2.88 $55.8 NM 16.7 0.5 0.7 1.37 $0.0 14.7 1.0 0.45 $32.72 $34.1 14.2 19.0 6. COLTENE Holding AG DENTSPLY International.Section 4 | Comparable Company Analysis 4.8 2.0 0. Biolase Technology.3 ($126.4 NM 33.2 $28.1 LTM 51.1 2.67 $0.83 High $18.1 1.3 4.9) $27.65 $0.25 $34.6 0. Inc.7 0.8 $77. Inc.3 $4. Inc. All currency figures in USD.8 2.8 20.7 2.1 $26.7 EV*/EBITDA ‘07 23.186.9 0.8 3. and Market Capitalization in millions.2 LTM 4.1 19.6) $293.3 2.0 14.3 2.8 12.085.9 0.59 $4.3 27.9 9.7 5.8 2.2 1.51 $280.1 Price/Sales ‘07 6.80 $12.4 NM 15.6 3. EV. Inc.2 $5.8 15.7 $2.4 20.64 $153.7 1.80 $1.03 $1.1 2.5 6.6 21.5 0.1 NM 16.8 $260.5 NM 5.2 EV*/Net Sales ‘07 High Mean Median Low 6.642. Market Capitalization and Enterprise Value as of 1/5/2010.5 LTM 4.0 1.54 $8.9 0.5 16.254.8 4.341.0 ‘08 1.1 NM 32.25 $15.6 NM 13. Dental Products Market Update | p.7 2.9) $44.0 ‘08 7.6 0.5 1.6 0.7 16.7 4.5 ‘08 3.7 0.1 26.0 LTM 29.0 0.6 1.4 6.3 $56.8 $292.00 $223.307.7 $1.1 ($3.0 $48.226.78 $8.6 $250. National Dentex Corp.60 $1.9 $5.0 NM 9. Comparable Company Analysis Dental Products Company Align Technology.7 12.4 26.5 17. V.V. Comparable Transaction Analysis Dental Products Closing Date 8/6/2009 Target AXIS Dental Corporation Vigodent SA Indústria e Comércio Buyer Sybron Dental Specialties. The senior credit facilities were led by The PrivateBank and Trust Company with GE Capital. Ortho Organizers manufactures and distributes orthodontic products for the dental market. Inc. Nobel Biocare Holding AG acquired BioCad Medical. (NasdaqGS:HSIC) NA NA NA NA 1/12/2009 Anthos Impianti Srl Henry Schein. Inc. Vigodent SA Indústria e Comércio manufactures and markets restorative and prosthetic dental consumables. multimedia systems. Vigodent generates sales of approximately BRL 20 million. completed the acquisition of the assets of Apollonia & Fama Impant S. (OTCBB:REMI) DENTSPLY International. Inc.r. acquired AXIS Dental Corporation. (NasdaqGS:HSIC) NA NA NA NA 1/12/2009 Placontrol. and dental pharmaceuticals.cash & equivalents + debt + minority interest + preferred shares Dental Products Market Update | p. Inc. from Celerity Partners and Ampersand Ventures. Inc. for undisclosed amount.3 million in cash. and veterinary markets. Inc. Healthcare Financial Services participating in the credit. and distributes disposable dental flossers for dental professionals in California. Anthos Impianti offers products for the dental surgery. markets. Sylphar N. COLTENE Holding AG completed the acquisition of 40% stake in Vigodent SA Indústria e Comércio. over-thecounter. Inc. NA NA NA NA 11/10/2008 33. Ranir. acquired 99% in Sylphar N. NA NA NA NA 3/9/2009 Ortho Organizers. Inc.3 33. AXIS Dental engages in the distribution of logic sets. manufactures drills and precision instruments for medical. Total Trans. operating lights. COLTENE Holding AG (SWX:CLTN) Transaction Description Sybron Dental Specialties. BioCad Medical manufactures titanium bars that are used for oral and dental applications. its revenues were approximately $30 million. develops. Inc.5 NA NA 12/1/2008 Apollonia & Fama Impant S. Henry Schein. Avalign's subordinated notes were purchased by RoundTable Capital Partners. Henry Schein. develops and markets oral care products. acquired Ortho Organizers. (NasdaqGS: XRAY) Nobel Biocare Holding AG (SWX:NOBN) 2. for $33. and NTI rotary instruments. Inc. and imaging products. Inc.11 . acquired Anthos Impianti Srl from Cefla Gest S. LLC NA NA NA NA 12/10/2008 Sylphar N. Placontrol. including dental units. For the year 2008. Inc. In 2008. dental. a contract manufacturing company. Inc. Henry Schein. Inc.L.5 2. Inc. from Remedent NV for $2. DENTSPLY International. Value ($m) NA Enterprise Value ($m) NA EV*/ Revenues NA EV*/ EBITDA NA 6/30/2009 NA NA NA NA 5/1/2009 NGInstruments. Inc.V. endodontic products. Inc. Remedent. Inc. Inc. Avalign Technologies. COLTENE has an option to acquire the remaining 60% stake after two years. Avalign Technologies.l.Section 5 | Comparable Transaction Analysis 5. it reported €32 million in revenues. Remedent.3 NA NA *Enterprise Value (EV) = Market Capitalization .5 million. NGInstruments. The financial terms of the transaction were not disclosed.R. Apollonia & Fama Impant markets and sells dental implant products.l BioCad Medical. Inc. acquired NGInstruments.r. organization systems. . Straumann Holding AG acquired Etkon CAD-CAM Iberica S. Pentron Corporation manufactures and markets dental restorative products. from Peter Brasseler and family.P.cash & equivalents + debt + minority interest + preferred shares Dental Products Market Update | p. KG. Nobel Biocare Holding AG acquired Implant Master for an undisclosed amount.L.11 million.5 million. and markets dental. Comparable Transaction Analysis Dental Products (cont’d) Closing Date 9/2/2008 Target Dental Art Laboratories. based in Hungary.0 EV*/ Revenues 1. National Dentex borrowed $10 million under the consolidated revolving line of credit to fund the purchase. Value ($m) 10. Shirokusu Dental Supply Works is a medical device company and is based in Osaka. DentalPlus Kft.12 .8 million. Etkon CAD-CAM Iberica S. Carousel Capital III. (NasdaqGM:NADX) Transaction Description National Dentex Corp. for $10. engages in the distribution of Nobel Biocare Holding's products. designs and manufactures dental equipment and instruments for dentists and dental technicians. Inc.L. IMTEC manufactures dental implants and cone beam computed tomography scanning equipment for dental and medical radiology.. IMTEC Corporation was acquired by 3M Co. National Dentex acquired $0. and other members of management acquired Brasseler USA. a 3M Company. Inc. and infection prevention products in the United States and internationally. Nobel Biocare Holding AG (SWX:NOBN) Carousel Capital NA NA NA NA 2/18/2008 Brasseler USA. Buyer National Dentex Corp. Sybron Dental Specialties. a subsidiary of Danaher Corp.8 NA NA 6/27/2008 Implant Master Nobel Biocare Holding AG (SWX:NOBN) NA NA NA NA 6/13/2008 MediMatch Dental Laboratory IMTEC Corporation (nka IMTEC.L. Dental Art had sales in excess of $7. ADP Dental Company Limited 3M Co. Inc.5 11. KG NA NA NA NA 2/22/2008 Dental Plus Kft. Japan. Implant Master engages in the distribution of dental care products and is based in Taiwan.5 NA NA 3/15/2008 Shirokusu Dental Supply Works KaVo Dental GmbH & Co.3x EV*/ EBITDA NA 8/5/2008 Pentron Corporation Sybron Dental Specialties. Inc. is a distributor of dental CAD/CAM solutions based in Málaga. NA NA NA NA 8/1/2008 Medicim NV Nobel Biocare Holding AG (SWX:NOBN) 11.5 million in its last fiscal year ended December 31. and is now known as IMTEC. Inc. manufactures. acquired Dental Art Laboratories.11 million of cash. of Carousel Capital along with Brasseler's Chief Executive Officer. from Etkon AG for $11. dental implant.8 11.1 Enterprise Value ($m) 10. Total Trans. ADP Dental Company Limited operates as a dental company in the United Kingdom. 2007. designs. Inc.Section 5 | Comparable Transaction Analysis 5... Nobel Biocare combined its operations with Medicim's specialized business unit for digital dentistry and took over all of its patents. (NYSE:MMM) NA NA NA NA 5/15/2008 NA NA NA NA 4/28/2008 Straumann Holding AG (SWX:STMN) 11. Nobel Biocare Holding AG acquired Medicim NV for $11. KaVo Dental GmbH & Co. Spain. a subsidiary of Danaher Corp. L. a 3M Company) Etkon CAD-CAM Iberica S. Don Waters. NA NA NA NA *Enterprise Value (EV) = Market Capitalization . Dental Business Denics International Co. an orthodontic technology and services company. Nevin Labs Warburg Pincus. ORMEDENT spol. Inc. cabinetry. President of DentalEZ.Section 5 | Comparable Transaction Analysis 5.6 0. AlphabioTec is a dental implant company. LLC Dental division develops and markets precision surgical and prosthetic devices for the restoration of missing dentition.0 0. for $2. The consideration will be paid in a combination of cash and stock. Lingualcare. from Ophir Fromovich.7x NA 10/1/2007 Lingualcare. Straumann Holding AG acquired ORMEDENT spol.0 NA NA 12/11/2007 5.cash & equivalents + debt + minority interest + preferred shares Dental Products Market Update | p. acquired JP Medical from the Managing Director of JP Medical and other private investors for $12. 10.45 million was paid in cash at the time of acquisition. for $5 million in cash. Astra Tech AB acquired Denics International Co. Inc. BioHorizons Implant Systems.0 40. Inc. As a part of the consideration $1. LLC 243. Medeco B. s r. and Precise Dental Products. European Design. Inc. Inc. (nka: Astra Tech K.o. Ltd. Gordon Hagler. The company reported total sales of $18. Total Trans. manufactures dental equipment. NA NA NA NA 11/12/2007 European Design. For the year 2006. Buyer Nobel Biocare Holding AG (SWX:NOBN) Transaction Description Nobel Biocare Holding AG signed an agreement to acquire AlphabioTec Ltd. Comparable Transaction Analysis Dental Products (cont’d) Closing Date 2/6/2008 Target AlphabioTec Ltd. along with Bob Nevin and Denis Sexton of Nevin acquired Nevin Labs for undisclosed amount. acquired Precision Dental International. Inc. including dental care.2x NA 12/1/2007 Integra LifeSciences Holdings Corporation (NasdaqGS:IART) DentalEZ. Ltd. 12.9 NA NA 1/15/2008 Lifecore Biomedical.V.45 million payable in 2010 conditional upon a set of performance criteria regarding the acquired business. JP Medical provides healthcare products.2x 12/14/2007 Luitpold Pharmaceuticals.0 Enterprise Value ($m) 95.o. Integra LifeSciences Holdings Corp. tools. and Precise Dental Products. training.0 EV*/ Revenues NA EV*/ EBITDA NA 1/30/2008 Implant Logic Systems. provides products. (nka: Straumann sro) BioHorizons. acquired dental business of BioMimetic Therapeutics Inc.9 million.. 2006. acquired Implant Logic Systems for undisclosed amount.8x 15. Inc.0 million for the year ended December 31.6 12.6 million in cash. Implant Logic Systems provides software technology solutions to the dental implant market. Value ($m) 95. s r. for $40 million.6 2.5 million in cash. The agreement includes an earn-out with a maximum of $1. materials.9 2. and product marketing programs for the orthodontic practice in the United States.13 . Inc.V. and installs dental laboratory furniture and processing equipment.5 NA NA 11/14/2007 DentalEZ Group. Astra Tech AB 40. Luitpold Pharmaceuticals. Inc. its revenues were $30 million. Inc. Midmark Corporation NA NA NA NA 10/2/2007 JP Medical BV Medeco B.6 199. Ltd. Denics International distributes and markets dental products.5 10. Lifecore Biomedical.) Precision Dental International. Inc.0 5. LLC BioMimetic Therapeutics. NA NA NA NA 1/16/2008 Straumann Holding AG (SWX:STMN) 2. builds. Ltd.. Nevin Labs designs.K. furniture. and dental delivery systems. for $10. Owner and Chief Executive Officer of Alphabiotech for $95 million. Ltd. 3M Unitek Corporation NA NA NA NA *Enterprise Value (EV) = Market Capitalization . Inc. Section 5 | Comparable Transaction Analysis 5. Straumann Holding acquired BI Trading Co. NA NA NA NA 3/2/2007 Etkon AG (nka: Straumann CADCAM GmbH) 102. Abzil Industria e Comercio Ltda.7x 1. BI Trading Co. Inc. Sportswire.1 19. NEKS Technologies. $62.0 Enterprise Value ($m) 71. Inc..2 NA NA 5/14/2007 Blue X Imaging Srl Sirona Dental Systems Inc. Blue X Imaging Srl engages in the design. Atlantis Components designs and machines titanium abutments that allow dentists to restore implants. (NasdaqGS:XRAY) 4.. manufactures orthodontic products in Brazil. Straumann CADCAM GmbH develops. (NasdaqGS:ELOS) Straumann Holding AG (SWX:STMN) NA NA NA NA 4/10/2007 Fluorinex Active Ltd.cash & equivalents + debt + minority interest + preferred shares Dental Products Market Update | p. is a dental equipment manufacturer in Canada.83 131.7 4. Inc. (NasdaqGS:SIRO) Syneron Medical Ltd.2 70.2 million will be paid on or before February 1. Comparable Transaction Analysis Dental Products (cont’d) Closing Date 9/27/2007 Target Atlantis Components. and distribution of imaging equipment for the dental community. acquired Strong Dental Products. Strong Dental Products had annual revenues of approximately $1 million.3 1. Sportswire is a manufacturer of endodontic materials based in Oklahoma.0 EV*/ Revenues NA EV*/ EBITDA NA 9/26/2007 Strong Dental Products. Fluorinex Active Ltd. non-invasive. a subsidiary of AstraZeneca (LSE: AZN) acquired Atlantis Components.1 19.7x NA 9/12/2007 8/7/2007 8/1/2007 NA 10.1 NA NA NA NA NA NA 7/2/2007 Daishin Implant System Co.2 million. Buyer Astra Tech AB Transaction Description Astra Tech AB.7 million in cash. Abzil Industria e Comercio Ltda. Inc. Inc. Inc. Ltd.com Crosstex International. Inc. Ltd. Daishin Implant System engages in the distribution of implant dentistry products and services in Japan. which develops and commercializes proprietary.1 million in cash. has raised a round of funding from Syneron Medical Ltd. Sportswire. Inc. TMV Medica SA.9 0.14 . for $10. engages in the research and development of tooth care systems for the prevention of dental caries and aesthetic tooth whitening.2 NM NM NM NM *Enterprise Value (EV) = Market Capitalization . Straumann Holding AG acquired Daishin Implant System for a purchase price of $70. DENTSPLY International. 2014. Total Trans.1 NA 10. manufactures. TMV Medica is a sales and marketing organization for implant products in Spain. 3M Unitek Corporation Straumann Holding AG (SWX:STMN) DENTSPLY International. manufacture. NEKS Technologies. for $4.0 million was paid in cash and an additional performance-based consideration of up to $8.1 million in cash.7 4.com from BDC Venture Capital for $19. a subsidiary of Cantel Medical Corp. Value ($m) 71. Ltd. As per the terms of the agreement. TMV Medica SA. Fluorinex Active Ltd. Inc. Inc. Straumann Holding AG (SWX:STMN) 70. Straumann Holding AG acquired 78% majority stake in Etkon AG from Alfred Wieder AG for $102. from a consortium of investors for $71 million in cash. Crosstex International.83 NA NA High Median Mean Low 4. and distributes dental CAD/CAM solutions. Inc.83 million. handheld dental instruments for early diagnosis of pathologies. (NasdaqNM: XRAY) acquired NEKS Technologies. Section 6 | Dental Products Index 6. Inc...15 Ap Ap Ju Ja n ril ril ril ril ril -10 08 06 06 09 05 05 6 6 9 8 8 5 5 .. Inc. Young Innovations. COLTENE Holding AG. Biolase Technology. Inc. Remedent. Inc. Sirona Dental Systems. Inc. Inc.. The index is weighted by market capitalization. Straumann Holding AG. Dental Products Index 180 160 140 120 100 80 60 40 20 0 S&P 500 Index Dental Products Index 09 Oc t-0 9 -0 7 07 Oc t-0 7 Ja n08 -0 Oc t-0 -0 7 Oc t-0 -0 Oc t-0 -0 ly- ly- n- ly- -0 ly- ly- n- n- Ja n Ja Ja Ju Ju Ju Ja Ju Ap Ap Ap Dental Products Index includes: Align Technology.. Nobel Biocare Holding AG. National Dentex Corporation. Dental Products Market Update | p. DENTSPLY International. Brocair Partners makes no recommendation whatsoever of the merits of any investment in any company listed in this report. This report is being furnished to you for informational purposes only and on the condition that it will not form the basis for any investment decision. This report does not constitute an offer or invitation to purchase assets or securities of any kind in the companies described herein. Brocair Partners also points out that the report’s content may be obsolete due to information not available as of today. 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