Danaher Corp, Washington, DC, announced its intention to spin off its dental segment into an independent, publicly traded company, DentalCo.
DentalCo will be comprised of Ormco, KaVo Kerr, and Nobel Biocare. These companies generated revenue of nearly $3 billion in 2017 and is expected to have an investment-grade credit rating and a global team of approximately 12,000 people, according to a press release from Danaher.
Danaher is targeting the second half of 2019 for the complete spin-off.
“This is an important step towards realizing even greater potential for both Danaher and our Dental business,” said Thomas P. Joyce, Jr., president & CEO of Danaher. “Today’s announcement demonstrates our commitment to maximizing long-term value for all of our shareholders, customers and associates. We believe that our Dental business can be more effective as a standalone company, with greater focus around both organic and inorganic investment opportunities.”
Joyce continued, “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. We believe this is an impactful combination that will support an attractive earnings growth profile going forward.”
Amir Aghdaei will become president and CEO of DentalCo upon completion of the transaction, and will join DentalCo’s Board of Directors. Aghdaei joined Danaher in 2008 and currently serves as group executive with responsibility of the dental segment.
Aghdaei stated, “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. We intend to build upon and reinforce our common culture—the Danaher Business System—and will continue to deliver world-class innovation, service and solutions for our customers. This is a tremendous opportunity to enhance our strategic position, and I look forward to leading the team through this important milestone.”