Dentsply Claims AstraZeneca’s Device Business

AstraZeneca PLC has agreed to sell Astra Tech, its dental implants and medical device unit, to Dentsply International Inc. for $1.8 billion.

AstraZeneca, headquartered in London, United Kingdom, announced that it would be selling Mölndal, Sweden-based Astra Tech late last year in order to focus on its core medicine development and increase returns to shareholders as it prepares for a series of patent expirations. Since then, AstraZeneca received a series of bids from private equity firms and medical companies.

“The high degree of interest and the competitive nature of this process is evidence of the value that the employees of Astra Tech have built in the marketplace,” said AstraZeneca CEO David Brennan.

According to York, Pa.–based Dentsply, the purchase will increase revenue by about 25 percent and immediately be accretive to earnings.

“The combination more than doubles our position in dental implants while expanding the breadth of our portfolio in this growing segment of dentistry,” said Dentsply CEO Bret Wise. “The urology and surgery management team provide us with additional growth opportunities.”

The transaction is expected to close in the second half and will be recorded as a significant item not included in AstraZeneca’s core financial earnings.