Dentsply Sirona Initiates Review of Strategic Alternatives for Wellspect Healthcare
Dentsply Sirona (XRAY) has initiated a strategic review of its Wellspect Healthcare business, a leading provider of bladder and bowel management care products. Wellspect has demonstrated strong performance with mid-to-high single-digit organic sales growth in 2023 and through Q3 2024, operating in an estimated $2 billion total addressable market.
The company has invested in strengthening Wellspect's foundation through product innovation, profitable revenue growth, and capacity expansion. The strategic review aims to unlock value for stakeholders while allowing Dentsply Sirona to focus on its core dental business. Goldman Sachs is serving as financial advisor, and the company will report Q4 and full-year 2024 results on February 27, 2025.
Dentsply Sirona (XRAY) ha avviato una revisione strategica della sua attività di Wellspect Healthcare, un fornitore leader di prodotti per la gestione della vescica e dell'intestino. Wellspect ha dimostrato una forte performance con una crescita organica delle vendite a singola cifra medio-alta nel 2023 e fino al terzo trimestre del 2024, operando in un mercato totale indirizzabile stimato di 2 miliardi di dollari.
L'azienda ha investito nel consolidamento delle basi di Wellspect attraverso l'innovazione dei prodotti, la crescita redditizia delle entrate e l'espansione della capacità. La revisione strategica mira a sbloccare valore per gli stakeholder, mentre Dentsply Sirona si concentra sulla sua attività dentale principale. Goldman Sachs funge da consulente finanziario e l'azienda riporterà i risultati del quarto trimestre e dell'intero anno 2024 il 27 febbraio 2025.
Dentsply Sirona (XRAY) ha iniciado una revisión estratégica de su negocio de Wellspect Healthcare, un proveedor líder de productos para el manejo de la vejiga y los intestinos. Wellspect ha demostrado un sólido rendimiento con un crecimiento orgánico de ventas de dígitos simples medios a altos en 2023 y hasta el tercer trimestre de 2024, operando en un mercado total direccionable estimado de 2 mil millones de dólares.
La empresa ha invertido en fortalecer la base de Wellspect a través de la innovación de productos, el crecimiento rentable de ingresos y la expansión de capacidad. La revisión estratégica busca desbloquear valor para los interesados, permitiendo a Dentsply Sirona centrarse en su negocio dental principal. Goldman Sachs actúa como asesor financiero, y la compañía informará los resultados del cuarto trimestre y del año completo 2024 el 27 de febrero de 2025.
Dentsply Sirona (XRAY)는 Wellspect Healthcare 사업에 대한 전략적 검토를 시작했습니다. Wellspect는 방광 및 장 관리 제품의 주요 공급업체로서 2023년과 2024년 3분기까지 중간에서 높은 단일 자릿수의 유기적 판매 성장을 보이며 약 20억 달러의 시장 규모에서 운영되고 있습니다.
회사는 제품 혁신, 수익성 있는 매출 성장 및 생산능력 확장을 통해 Wellspect의 기초를 강화하는 데 투자해왔습니다. 이번 전략적 검토는 이해관계자를 위한 가치를 창출하고 Dentsply Sirona가 핵심 치과 사업에 집중할 수 있도록 하는 것을 목표로 하고 있습니다. Goldman Sachs는 재무 자문 역할을 맡고 있으며, 회사는 2024년 4분기 및 연간 실적을 2025년 2월 27일에 보고할 예정입니다.
Dentsply Sirona (XRAY) a lancé une révision stratégique de son activité Wellspect Healthcare, un fournisseur leader de produits de gestion de la vessie et des intestins. Wellspect a montré de bonnes performances avec une croissance organique des ventes à un chiffre moyen à élevé en 2023 et jusqu'au troisième trimestre 2024, opérant sur un marché total adressable estimé à 2 milliards de dollars.
L'entreprise a investi dans le renforcement des bases de Wellspect grâce à l'innovation produit, la croissance rentable des revenus et l'expansion des capacités. La révision stratégique vise à libérer de la valeur pour les parties prenantes tout en permettant à Dentsply Sirona de se concentrer sur son activité dentaire principale. Goldman Sachs est le conseiller financier, et l'entreprise annoncera ses résultats du quatrième trimestre et de l'année 2024 le 27 février 2025.
Dentsply Sirona (XRAY) hat eine strategische Überprüfung seines Geschäftsbereichs Wellspect Healthcare eingeleitet, eines führenden Anbieters von Produkten für die Blasen- und Darmpflege. Wellspect hat eine starke Leistung mit einem organischen Umsatzwachstum im mittleren bis hohen einstelligen Bereich in 2023 und bis zum dritten Quartal 2024 gezeigt und operiert in einem geschätzten adressierbaren Gesamtmarkt von 2 Milliarden Dollar.
Das Unternehmen hat in die Stärkung der Basis von Wellspect durch Produktinnovation, profitables Umsatzwachstum und Kapazitätserweiterung investiert. Ziel der strategischen Überprüfung ist es, Werte für die Stakeholder freizusetzen, während Dentsply Sirona sich auf sein Kerngeschäft im Dentalbereich konzentriert. Goldman Sachs fungiert als Finanzberater, und das Unternehmen wird die Ergebnisse des vierten Quartals und des Gesamtjahres 2024 am 27. Februar 2025 bekanntgeben.
- Wellspect Healthcare showing mid-to-high single-digit organic sales growth (2023-Q3 2024)
- Operating in a large $2 billion total addressable market
- Strong product pipeline with potential to access untapped markets
- Potential divestiture of a growing business segment could impact overall company revenue
Insights
The strategic review of Wellspect Healthcare marks a pivotal moment in Dentsply Sirona's portfolio optimization strategy. The timing is particularly strategic given Wellspect's demonstrated growth trajectory and strong market position in the $2 billion continence care market.
Several key factors make this potential divestiture compelling:
- Wellspect's consistent mid-to-high single-digit organic growth through Q3 2024 suggests a premium valuation in a potential transaction
- Recent investments in product innovation and capacity expansion have strengthened the unit's market position and future growth potential
- The medical device sector has seen significant M&A activity, with specialty players commanding attractive multiples
The strategic review aligns with broader industry trends where diversified medical technology companies are streamlining portfolios to focus on core competencies. For Dentsply Sirona, this move could unlock significant value through:
- Enhanced focus on the core dental business, where scale and market leadership provide competitive advantages
- Improved capital allocation efficiency and potential debt reduction from transaction proceeds
- Simplified organizational structure leading to better operational execution
The engagement of Goldman Sachs suggests a comprehensive process that could attract both strategic buyers seeking to expand in the continence care market and private equity firms drawn to Wellspect's stable growth profile and market leadership. While the outcome remains uncertain, the strategic rationale is sound and could catalyze value creation for shareholders.
CHARLOTTE, N.C., Feb. 11, 2025 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the "Company") (Nasdaq: XRAY) today announced that the Company has initiated a process to evaluate strategic alternatives for its Wellspect Healthcare business (“Wellspect”).
Wellspect is a leading provider of bladder and bowel management care products with an over 40-year history. Through its comprehensive portfolio of products and accessories from trusted brands like LoFric® and Navina™, Wellspect has delivered improved organic sales growth in recent years, including mid-to-high single digit growth for 2023 and through the first three quarters of 2024. The business is well-positioned in the large and growing continence care space, which has an estimated
“We have initiated a review of strategic alternatives for Wellspect as we believe that taking this step now enables us to unlock significant potential value for all our stakeholders,” said Simon Campion, President and Chief Executive Officer of Dentsply Sirona. “As part of our transformation strategy over the last few years, we invested in strengthening Wellspect’s foundation and positioning the business for the future by prioritizing product innovation, profitable revenue growth and capacity expansion to meet anticipated demand growth. Importantly, we developed a strong product pipeline with potential opportunities to access significant untapped markets in Wellspect’s core business and other adjacencies, and we have seen early indications that this added focus has led to improved financial performance. We look forward to determining an outcome for Wellspect that supports the business’ enhanced growth trajectory and success while also enabling Dentsply Sirona to focus our resources and attention on our dental business.”
Campion continued, “We continue to make progress executing the second phase of our business transformation journey by taking steps to reshape the organization, unlock efficiencies, enhance customer engagement and strategically allocate spend to generate the greatest return, including in commercial investments. We are confident that these actions will enable us to deliver on the promise that a broad-based dental organization has to offer. As we move forward, the Board and management team are committed to a continued disciplined approach in regularly evaluating the Company’s portfolio, cost structure, investments and other avenues to drive sustainable, profitable growth and enhanced shareholder value.”
There is no deadline or definitive timetable set for completion of the strategic alternatives process or assurance that the process will result in a transaction. Dentsply Sirona does not intend to make further announcements regarding the review of strategic alternatives unless and until the Board approves a course of action or otherwise determines further disclosure is appropriate or necessary.
Goldman Sachs & Co. LLC is serving as financial advisor to Dentsply Sirona and Wachtell, Lipton, Rosen & Katz is serving as legal advisor.
As previously announced, the Company will report its financial results and host its investor conference call for the fourth quarter and full year 2024 on February 27, 2025.
About Dentsply Sirona
Dentsply Sirona is the world’s largest manufacturer of professional dental products and technologies, with over a century of innovation and service to the dental industry and patients worldwide. Dentsply Sirona develops, manufactures, and markets a comprehensive solutions offering including dental and oral health products as well as other consumable medical devices under a strong portfolio of world class brands. Dentsply Sirona’s products provide innovative, high-quality, and effective solutions to advance patient care and deliver better and safer dental care. Dentsply Sirona’s headquarters is located in Charlotte, North Carolina. The Company’s shares are listed in the United States on Nasdaq under the symbol XRAY. Visit www.dentsplysirona.com for more information about Dentsply Sirona and its products.
Contact Information
Investors:
Andrea Daley
Vice President, Investor Relations
+1-704-591-8631
InvestorRelations@dentsplysirona.com
Press:
Marion Par-Weixlberger
Vice President, Public Relations & Corporate Communications
+43 676 848414588
marion.par-weixlberger@dentsplysirona.com
Forward-Looking Statements and Associated Risks
This Press Release contains statements that do not directly and exclusively relate to historical facts which constitute forward-looking statements, including statements and projections concerning the review of strategic alternatives for Wellspect, including whether the review will result in any transaction or other outcome, or the terms, timing or structure of any such transaction (if such transaction will take place). The Company’s forward-looking statements represent current expectations and beliefs and involve risks and uncertainties. Actual results may differ significantly from those projected or suggested in any forward-looking statements and no assurance can be given that the results described in such forward-looking statements will be achieved, or that any transaction or future events will occur as anticipated, if at all. Investors are cautioned not to place undue reliance on such forward-looking statements which speak only as of the date they are made. The forward-looking statements are subject to numerous assumptions, risks and uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. The Company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Any number of factors could cause the Company’s actual results to differ materially from those contemplated by any forward-looking statements, including, but not limited to, the risks associated with the following: the Company’s ability to remain profitable in a very competitive marketplace, which depends upon the Company’s ability to differentiate its products and services from those of competitors; the Company’s failure to realize assumptions and projections which may result in the need to record additional impairment charges; the effect of changes to the Company’s distribution channels for its products and the failure of significant distributors of the Company to effectively manage their inventories; the Company’s failure to receive any regulatory authorization needed to commercialize any particular product or service offering; the Company’s ability to control costs and failure to realize expected benefits of cost reduction and restructuring efforts and the Company’s failure to anticipate and appropriately adapt to changes or trends within the rapidly changing dental industry. Such statements are subject to numerous assumptions, risks, uncertainties and other factors, and investors should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, (“Risk Factors”) in the Company’s most recent Annual Report on Form 10-K, including any amendments thereto, and any updating information which may be contained in the Company’s other filings with the SEC, when reviewing any forward-looking statement. The Company notes these factors for investors as permitted under the Private Securities Litigation Reform Act of 1995. Investors should understand it is impossible to predict or identify all such factors or risks. As such, you should not consider either the foregoing lists, or the risks identified in the Company’s SEC filings, to be a complete discussion of all potential risks or uncertainties.
FAQ
What is the market size for Wellspect Healthcare's continence care business (XRAY)?
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