XRAY
DENTSPLY Sirona Inc.
Healthcare, Event Driven/Special Sit
03/04/2016
Presented
| Date | 03/02/2016 |
| Price | $60.20 |
| Market Cap | $8.60B |
| Ent Value | $9.54B |
| P/E Ratio | 34.2x |
| Book Value | $16.69 |
| Div Yield | 0.48% |
| Shares O/S | 142.90M |
| Ave Daily Vol | 1,735,791 |
| Short Int | 7.31% |
Current
| Price | $24.31 |
| Market Cap | $4.93B |
| DENTSPLY Sirona Inc. engages in the manufacturing and distributing of dental and other healthcare products. It designs, develops, manufactures and markets a full range of professional dental products, including dental implants, endodontic instruments and materials, orthodontic appliances, restorative materials, preventive materials and devices and prosthetic materials and devices. The company operates through the following segments: Dental Consumable and Certain International Businesses; Dental Specialty and Laboratory and Certain Global Distribution Businesses; Healthcare and Emerging Markets Businesses. The Dental Consumable and Certain International Business segment designs and manufactures company's chairside consumable products. The Certain Global Distribution Business segment designs, manufactures, sells and distributes dental specialty products, including endodontic, orthodontic and implant products, in most regions of the world. The Healthcare and Emerging Markets Businesse segment designs, manufactures, sales and distributes healthcare products, primarily urological and surgery-related products, throughout most of the world. DENTSPLY International was founded by Jacob F. Frantz, Dean C. Osborne, George H. Whiteley and John R. Sheppard on June 23, 1899 and is headquartered in York, PA. |
Publicly traded companies mentioned herein: DENTSPLY Sirona Inc (XRAY), Henry Schein Inc (HSIC), Patterson Companies Inc (PDCO)
Highlights
The presenter is short shares of Dentsply Sirona (XRAY) post the successful completion of what was technically a “merger of equals.” DENTSPLY International officially combined with Sirona Dental Systems at the end of February; Sirona’s CEO Jeffrey Slovin “is taking over the helm, but Sirona owns less than 50% of the combined company.” While the business logic of the deal “makes perfect sense” in the long run, the mechanics are concerning as Sirona’s growth had been slowing and it was looking for an acquisition before merging with DENTSPLY. In this deal, Sirona essentially “sold itself for no premium.” In addition, the evolution of the dental distribution channel “will be messy” and the stock is expensive (at 22x 2016 estimates) relative to the new company’s overall growth prospects.
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