Envista Announces Intended Sale Of KaVo Treatment Unit & Instrument Business To Planmeca

Envista Holdings Corporation (NYSE: NVST) ("Envista") today announced it entered into a binding agreement to sell its KaVo Treatment Unit and Instrument business to planmeca Verwaltungs GmbH ("Planmeca") for up to $455 million, which includes a potential earn-out payment of up to $30 million. The sale is expected to close at the end of 2021. The revenue of the business to be sold was approximately $357 million and $317 million in fiscal years 2019 and 2020, respectively.
KaVo Treatment Unit & Instruments is a leading global developer, manufacturer, and supplier of industry defining dental treatment units and instruments, with a globally renowned brand known for its 100+ year history in innovation, cutting-edge design, and high-quality manufacturing of dental equipment. Founded in 1909, KaVo is headquartered in Biberach, Germany, is present in 60+ countries, and has a workforce of approximately 1,500 employees.
Envista Holdings Corporation CEO Amir Aghdaei said, "Envista is focused on its strategic priorities to build and optimize a more consumables and digitally enabled, workflow-oriented portfolio. This sale will better position Envista to invest organically and inorganically and expand our product offerings within these areas."
The business to be sold is part of Envista's Equipment & Consumables segment. Envista's Imaging business, which also currently uses the KaVo brand for select products, will stay with Envista as part of the Equipment & Consumables segment.
It is expected that the KaVo Treatment Unit and Instrument business will be reported as a discontinued operation beginning with Envista's third quarter 2021 10-Q filing.
The transaction is subject to the satisfaction of certain customary closing conditions, including the receipt of applicable regulatory approvals. The transaction is not subject to financing conditions or a shareholder vote.
J.P. Morgan Securities LLC acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Envista on the transaction.
Additional details about the transaction will be set forth in a Current Report on Form 8-K to be filed by Envista and available at www.sec.gov.