ZURICH, Switzerland, Feb. 7, 2008 (PRIME NEWSWIRE) -- Nobel Biocare announced today that it has agreed to acquire AlphaBioTec Ltd, the leading dental implant company in Israel and the innovator of the predecessor to NobelActive. Nobel Biocare will buy all outstanding shares in the company for a consideration of US$95 million.
With this acquisition, Nobel Biocare 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 a market leadership position in Israel and further expand its position in Russia, Poland and Latin America.
With a market share of more than 60 percent, AlphaBioTec is the leading dental implant company in Israel. AlphaBioTec products are also sold in more than 40 countries, and its export business has been growing at a pace in excess of 35 percent over the past several years. AlphaBioTec has achieved leading positions in high-growth countries in Eastern Europe, Russia and is expanding quickly in India, Korea and Latin America. AlphaBioTec has more than 20 years of experience in implant dentistry and is the innovator of NobelActive's predecessor product. Nobel Biocare's NobelActive is currently in pre-launch and is expected to be introduced to the market in the second quarter of this year.
Nobel Biocare will obtain all rights to AlphaBioTec's trademark, brand names, innovation pipeline, strong R&D network and proprietary manufacturing facility in Tel Aviv. 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.
Domenico Scala, CEO of Nobel Biocare: "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."
Under the terms of the agreement, 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.
NOBEL BIOCARE HOLDING AG
Nobel Biocare is a medical devices group and the world leader in innovative esthetic dental solutions with its brands Branemark System(r), NobelReplace(tm), NobelSpeedy(tm), NobelPerfect(r), NobelDirect(r), Replace Select (dental implants), Procera(r) (individualized dental prosthetics), NobelGuide(tm) (complete patient rehabilitation program) and NobelSmile(tm) (patient education and awareness program). Nobel Biocare is a total solution provider for restorative esthetic dentistry, offering a wide range of innovative Crown & Bridge & Implant products, as well as training and education, patient information and clinically documented treatment concepts. Nobel Biocare has over 2,200 employees and recorded revenue of EUR 601 million in 2006. The Company is domiciled and headquartered in Zurich, Switzerland. Production takes place at five production sites located in Sweden, USA and Japan. Nobel Biocare has direct sales organizations in 35 countries. The shares of the parent company Nobel Biocare Holding AG are listed on SWX Swiss Exchange and OMX Stockholm, Sweden.
www.nobelbiocare.com / www.nobelsmile.com
About small diameter implants and orthodontic mini screws
Small diameter implants are one of the fastest-growing segments in dental implantology. In the U.S. alone, market growth is expected to exceed 30 percent from 2007 to 2011. Small-diameter dental implants usually require fewer steps to place and can be placed less invasively, making them a simpler solution for clinicians new to implantology. Patients often prefer the small-diameter implants because they involve less surgical time and are most cost-effective option (source: Millennium Research Group).
Orthodontic mini-screws represent one of the fastest growing segments in orthodontics (in excess of 40 percent from 2007 through 2011 in the U.S. alone, according to Millennium Research Group). They provide effective treatment that was previously only possible through surgery or headgear, both of which have strong negative effects on patient comfort. Orthodontic mini-screws can be placed by orthodontists themselves and tend to be an entry product for orthodontists who are adopting implant treatment.
Both the orthodontic mini-screws and the small diameter implants will be launched under the Nobel Biocare brand and will give Nobel Biocare the opportunity to enter two new markets that offer significant growth potential.