A spinoff of Danaher, dental supplies company Envista Holdings provides dental consumables, equipment, and services for practice professionals covering about 90% of dentists' clinical needs. A global group of three operating companies, KaVo Kerr, Nobel Biocare Systems, and Ormco combined represent over 125 years of dental industry experience.
Envista manufactures and sells dental products across the world, to over one million dental clinicians across 150 countries. The company's Specialty Products & Technologies segment provides dental implant systems, guided surgery systems, biomaterials, prosthetics, and dental eye loupes to oral surgeons, prosthodontists, and periodontists.
After experiencing major growth over the last three years, the California-based company has announced it's going public. Recently making its public debut, Envista opened at $25.65 after being priced at $22 per share, grossing $588.9 million. The dental spinout closed its initial public offering at $677 million.
J.P. Morgan, Goldman Sachs and Morgan Stanley were joint book-runners on the IPO, with Baird, Evercore ISI and Jefferies as co-book runners. BofA Merrill Lynch, Credit Suisse, Stifel and William Blair co-managed the offering.
While Envista raised just half as much as the Nasdaq IPO of another dental company, Smiledirectclub just six days earlier, with a $1.3 billion offer, the clear tooth aligner market leader had a shocking first day on the market. Losing 28% of its value, Smiledirectclub has managed to somewhat recover, but Envista appears to have come out on top. These deals are the two largest medtech IPOs to happen this year.
CEO Amir Aghdaei bought 10,000 shares of the firm’s stock, at an average price of $22 per share, with a total value of $220,000.00.
The news comes after Envista reported $2.85 billion in revenue in 2018, 70% of which is attributed to sales of consumables, services and spare parts. Net earnings for 2018 were $230.7 million compared to $301.1 million in 2017. As the global orthodontics market continues to grow, it’s projected to reach $2.6 billion by 2023 from $1.5 billion in 2016, according to Allied Market Research.
Operating in an appealing and growing sector within healthcare estimated at $23 billion, Envista stands to benefit and surpass their 2018 product sales.
