Straumann invests in Medentika and Createch, two fast-growing brands in the tooth replacement industry

Straumann today announced two important acquisition agreements that will advance its strategy to become a global leader in the 'value' segment of the tooth-replacement market. The Group's first step outside the premium segment, which it leads, was taken last year when it acquired 49% of Neodent, the market leader in implant dentistry in Brazil.

Medentika

Today, Straumann disclosed that it has signed an agreement to purchase 51% of Medentika GmbH and 51% of Medentika Implant GmbH (collectively referred to as 'Medentika') for a total agreed price of 32 million Euros – subject to approval by the German antitrust authority (Bundeskartellamt).

Founded in 2005 and based in Hügelsheim, Germany, Medentika is a fast-growing provider of attractively-priced implant prosthetics that are used with most leading implant and CADCAM systems. The company also supplies a range of titanium implants and instruments and is certified to EN ISO 13485:2007 and AC:2009. With a staff of 37, Medentika generated total revenues of approximately Euro 11 million in 2012, primarily from its prosthetics business, including standard, custom and titanium base implant abutments, which give dental technicians a one-stop source to restore implants from a range of manufacturers. Medentika's own implant business was established more recently and is developing well. (For further information please consult www.medentika.de).

Medentika products are sold directly in Germany, its major market, and through distributors in many other countries in Europe and the rest of the world.

Createch Medical

Established in 2006 and located in Mendaro, Spain, Createch Medical is the Medical Division of the Egile XXI Corporation. Createch employs a staff of 30 and specializes in the research, development and manufacture of high quality, innovative, implant-borne prosthetics. Its products, including CADCAM bridges, bars and abutments, are designed for a variety of implant systems and are sold mainly in Spain, Germany and other markets in Europe. Createch is smaller than Medentika and the financial details of the deal were not disclosed. The agreement provides Straumann with options to increase its stake up to 100% by 2020. (For further information on Createch Medical please consult www.createchmedical.com).

Separate brands

The companies will operate separately from Straumann as different brands with their own philosophy, salesforce, production and value proposition. This reflects the dual brand strategy that Straumann is already implementing with the Neodent brand. Straumann's own philosophy of providing superlative products and solutions backed by documented clinical evidence and service excellence remains unchanged.

Marco Gadola, Straumann's CEO, explained the rationale for the acquisition: "The attractiveness of implant dentistry has stimulated an increase in local 'value' players who offer 'look-alike' products at lower prices. While many do not offer the same high level of innovation, quality, support, experience and peace of mind, we have to accept that a growing number of customers are reluctant to pay for the proven added value offered by a premium brand like Straumann – particularly when it comes to restorative products. To address their needs and to capture this significant business opportunity, we are building a value-brand platform, in which Medentika and Neodent will have important roles. As a provider of best-in-class specialized prosthetics, Createch will support both our premium and value platforms. All three are well-run companies with growing footprints in key markets, making them valuable strategic assets for us. Partial ownership ensures entrepreneurial flexibility and will enable each company to maintain its own character and dynamism. The launch of Neodent in Spain last week is a good example of this approach".

The acquisition of Createch has been made and that of Medentika will be made through Instramed AG, a fully-owned subsidiary of Straumann Holding AG, which will act as a holding company for Straumann's investments in other brands and in the 'value' segment.