Sybron Dental Specialties, Inc. (NYSE: SYD) announced today that its Kerr subsidiary acquired the operating assets of Surgical Acuity, the leading manufacturer of telescope and fiber-optic lighting systems for the dental industry. The acquisition is expected to add between $10 to $15 million of sales revenue to Kerr’s operations. The purchase of the company will be financed through Sybron Dental Specialties’ existing credit facilities, and the Company expects the acquisition to be accretive within the first year of operations. Surgical Acuity’s telescope and lighting systems, marketed under the Orascoptic Research brand, provide the magnification and illumination needed in performing many dental procedures, and are frequently used by specialists in endondontics, cosmetic dentistry, orthodontics, periodontics, and prosthetic dentistry.
Sybron Dental Specialties intends to retain the management and staff of Surgical Acuity, which includes a sales force of approximately 17 people. The Middleton, Wisconsin facility will continue to manufacture the telescope and lighting systems, and serve as headquarters for the business.
“We are very pleased to have completed this acquisition, which we think has significant growth opportunities for Sybron and is consistent with our strategy of growing our business internally and through acquisitions,” said Floyd W. Pickrell, Jr., Chief Executive Officer of Sybron Dental Specialties. “The use of telescope and lighting systems is quickly becoming the standard of care in the dental industry and is now utilized as part of the training at most dental schools. These are high gross margin products that can yield a strong return for the Company as we increase sales. We believe that we can use our strong domestic presence in the dental community, including the orthodontic and endodontic specialties, to leverage Surgical Acuity’s sales. In addition, we also believe there is a largely untapped market for these telescope and lighting systems in international markets.
“We are excited to join forces with one of the premier companies in the dental industry and we look forward to leveraging their extensive sales resources to continuing growing the market for our products,” said Brian Wilt, General Manager of Surgical Acuity. “In addition to the general dental market, we also sell our products to dental hygienists, medical practitioners and doctors of veterinary medicine. These fields represent exciting growth opportunities and will be a continuing focus for our existing sales force.”
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those dealing with the Company’s expectations as to the growth of the market for telescope systems, the future sales of its products, and the financial impact of its acquisitions, are based on the Company’s current expectations. Our actual results may differ materially from those currently expected or desired because of a number of risks and uncertainties, including the level of demand for the Company’s products; regulatory compliance; currency fluctuations; distributor inventory adjustments; the intensity of competition; and other factors affecting the Company’s business and prospects discussed in the Company’s filings with the SEC, from time to time, including the factors discussed in the “Cautionary Factors” section in Item 7 of the Company’s most recent Annual Report on Form 10-K. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
BUSINESS DESCRIPTION
The subsidiaries of Sybron Dental Specialties are leading manufacturers of value-added products for the dental and orthodontic professions and products for use in infection control. The primary subsidiaries of Sybron Dental are Kerr, Ormco and Metrex. Kerr Corporation develops, manufactures, markets and distributes a comprehensive line of consumable products to the dental industry worldwide. Ormco engineers, manufactures, markets and distributes an array of consumable orthodontic and endodontic products worldwide. Metrex Research Corporation develops, manufactures, markets and distributes consumable infection prevention products to the dental and medical markets.