Dental Products Market Analysis – March 2015

Geographic expansion and advanced technology help drive acquisitions in the dental products market.

The dental products market is expected to grow at an annualized rate of around 7%, reaching $27.6 billion by 2015. The market for dental implants and dental biomaterials is expected to grow at 6% and 10.5% respectively from 2010 – 2015.¹

Revenue multiples are currently tracking at a median of 1.8x, while EBITDA multiples have a median of 14.2x. Since 2012, these have seen 71% and 35% increases, respectively.

Since the acquisition of Astra Tech by DENTSPLY in August 2011 and the acquisition of BioHorizons by Henry Schein in December 2013, there has been further consolidation among the top players in the market. In April 2014 Zimmer announced an agreement to acquire Biomet for $13.4 billion. Seven months later, Nobel Biocare, the world’s second-biggest maker of dental implants, was sold to Danaher Corp. for $2.4 billion.

Wound Care Market Analysis – March 2015

Wound care companies are consolidating their position in the market through geographic and portfolio expanding acquisitions.

The global wound care industry is currently valued at $20 billion and is expected to grow at a CAGR of 7% for the next four years to reach approximately $26 billion by 2018.

Median comparable public company multiples are currently tracking at 1.9x latest twelve months revenue while median EBITDA multiples in the same period are 12.4x. There has been a 37% and 55% increase in the sales and EBITDA multiples respectively since 2012.

Median transaction revenue multiples in the last two years are tracking at 4.0x while EBITDA multiples are at 10.9x.

The Wound Care Index has been largely tracking the S&P 500 but has consistently outperformed the S&P 500 since the beginning of 2013.

Recent M&A transactions in the wound care industry show an ongoing trend of companies looking to deepen and strengthen their portfolio through acquisitions.

Most recently in February 2015, Medtronic closed its acquisition of Covidien, the second largest player in the wound care market, for $48 billion. Covidien, based in Ireland, had a 11.4% market share in 2013.

In September 2014 Kinetic Concepts (KCI), LifeCell and Systagenix came together to form Acelity, a global leader in advanced wound care therapeutics and regenerative medicine.