Management team increases its share. US based financial investor
Madison Dearborn wins the race.
The Sirona management team and the private equity investment firm Madison Dearborn Partners, based in Chicago, have jointly acquired the Sirona Group. The group was previously owned by Sirona management and the investment fund EQT.
In this transaction, the management team increased its ownership in Sirona significantly. The transaction is subject to the approval of cartel authorities.
In 1997 Sirona was carved out from the medical division of the Siemens Group in the largest private equity buyout in Germany at that time. Since then, the leading manufacturer of equipment for dental practices, laboratories and clinics has shown strong growth. Between the financial years 1997-98 and 2003-04, sales increased from 200 million to 320 million euros.
The number of employees rose from around 1,200 to the current figure of 1,600. The company has significantly expanded its global presence in recent years. Sales outside of Germany reached 229 million euros last year. EBITDA in financial year 2003-04 was 71 million euros.
Sirona's President and Chief Executive Officer, Jost Fischer, commented on the transaction: "We are excited about Sirona's excellent recognition by the financial markets, having the best companies interested in partnering with us. Sirona is profitable, well positioned in its markets and has great potential. The current financial year will show accelerating growth, particularly in North America, one of our most important markets. With Madison Dearborn as our new financial sponsor, we add the potential of larger acquisitions to further enhance our market position."
Madison Dearborn Partners is one of the largest private equity investors in the US. The current fund volume amounts to approximately 8 billion US dollars. Since its formation in 1993, Madison Dearborn Partners' funds have closed over 100 transactions in the US and Europe.
The Health Care industry constitutes a primary specialty focus of investment. Sirona represents Madison Dearborn´s first healthcare investment in a German company.
Tim Sullivan, a Managing Director for MDP, said: "We believe Sirona is the premier dental product manufacturer in the industry. Their outstanding management team and wide array of quality products are keys to the Company's success. We are particularly thrilled about the growth potential of the company."
Madison Dearborn Partners was advised by JP Morgan, Baker & McKenzie LLP and Kirkland & Ellis International LLP. The transaction is being financed by JP Morgan. The sellers were advised by UBS and Lovells.
