Dentsply To Buy Sirona For About $5.51 Bln

(RTTNews) - Consumable dental products maker Dentsply International Inc. (XRAY) has agreed to buy rival Sirona Dental Systems Inc. (SIRO) for about $5.51 billion in an all-stock deal that would create the world's largest manufacturer of professional dental products and technologies.

Under the deal, Sirona shareholders will receive 1.8142 shares of Dentsply for each Sirona share held. Dentsply shareholders will own 58% and Sirona shareholders will own 42% of the combined company.

Sirona President and Chief Executive Officer Jeffrey Slovin will become the CEO of the combined company, and Dentsply Chairman and CEO Bret Wise will be its Executive Chairman.

The combined company will be called Dentsply Sirona and trade on the Nasdaq under the symbol XRAY. Dentsply Sirona's Global headquarters will be located in York, Pennsylvania, the location of Dentsply's current headquarters, while the International headquarters will be located in Salzburg, Austria.

The new company will have net revenue of about $3.8 billion on a pro forma basis for the last twelve months.

The deal is expected to be completed in the first quarter of calendar 2016.

Dentsply shares are currently gaining 9.83% in after hours trading after closing Tuesday's regular trading session at $5435, up 73 cents or 1.36%. Sirona shares are currently gaining 1.70% in extended hours trading after closing the day's regular trading session at $99.31, up $1.22 or 1.24%.