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- Straumann buying cheaper rivals
Straumann buying cheaper rivals
Straumann, the world's largest maker of dental implants, could spend over $400 million on buying cheaper rivals, signalling a desire to grab back market share from low-cost competitors.
Faced with sluggish demand in its main market of Europe, analysts and investors have urged Straumann and fellow premium rival Nobel Biocare to develop cheaper brands to compete in the fast-growing area of the market, which now accounts for roughly 60 percent of volumes.
Chief Executive Marco Gadola, who took the helm in April, said Straumann was looking at acquiring discount players in growing markets, such as China, and could spend up to 400 million Swiss francs ($432.5 million).
Last year, Straumann bought a 49 percent stake in Brazil's Neodent to tap into the low-cost market which is developing faster than the premium segment.
"With the exception of Neodent in Brazil, we have been limiting ourselves so far to the premium segment. However, we also realise we cannot ignore the value segment and we have to do more to penetrate this part of the market," Gadola told Reuters in an interview.
Income from its investments in Neodent and Dental Wings, as well as a one-off pension gain helped net profit jump 21 percent in the first-half to 54 million Swiss francs ($58 million), beating the Reuters analyst consensus of 37 million.
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Established in 2009, Dentalget has grown from a small, local business to a comprehensive solution for over 30,000 dentists throughout the World, We offer a full-line of dental equipment, parts, dental supplies, and accessories.
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