Swiss-based dental implants maker Straumann Group said it plans to acquire rival companies that make low-cost brands. The firm said it is specifically eyeing the acquisition of discount players in China and other growing markets. The move could cost them USD 432.5 million. Chief Executive Officer Marco Gadola told Reuters, "With the exception of Neodent in Brazil, we have been limiting ourselves so far to the premium segment. However, we also realise we cannot ignore the value segment and we have to do more to penetrate this part of the market." Straumann purchased a 49% stake in Neodent, a maker of cheaper dental implants, last year.
The dental implants manufacturer, however, faced a rough time in Europe where demand for its premium brand had grown sluggish. Straumann said it is expecting further sales declines there. European sales comprised 55% of the company's sales.
The low demand for premium brands prompted Straumann's investors and analysts to come up with more affordable brands. The low-cost segment roughly accounts for 60% of sales volumes and is fast growing, Reuters reported.
Join the Conversation