It’s been a while since a dental deal made news. Last week’s largest deal was DENTSPLY International’s (NASDAQ: XRAY) $13.3 billion all-stock merger with Sirona Dental Systems Inc. (NASDAQ: SIRO). DENTSPLY designs, develops, manufactures and markets various consumable dental products for the professional dental market, while Sirona has a more technological spin on the market. It develops, manufactures and markets dental equipment worldwide through four segments, Dental CAD/CAM Systems; Imaging Systems; Treatment Centers; and Instruments. The merger will create the world’s largest maker of professional dental products and technologies, with net revenue of approximately $3.8 billion and adjusted EBITDA of more than $900 million on a pro forma basis. The move was greeted with optimism in some corners. A few days after the deal’s announcement, Baird upgraded DENTSPLY to Outperform with a price target of $61 (15% upside) from $58. Morgan Stanley was even more bullish, upgrading XRAY to Overweight and raised its price target to $70 (32% upside) from $56.
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