AMSTERDAM, the Netherlands/BASEL, Switzerland: Straumann has announced the significant expansion of its business in emerging markets with an acquisition that will secure the company a 49 per cent stake in Neodent, a South American leader in implant dentistry. The news broke today during the Swiss dental group’s Capital Markets Day event in Amsterdam that was held to map out future strategies for the dental implant and restorative markets.

The major transaction, reported to be worth CHF260 million (US$277.3 million) in cash, is expected to gain Straumann a stronger market position in the Americas’ second largest dental implant market. Neodent’s main brand Titamax, which targets the mid- and low-price sector, is estimated to have a market share of 30 per cent in Brazil.

According to the company, combined sales in South America accounted for BRL167 million (US$84 million) last year.

“The Neodent brand offers access to a huge market segment that we are less able to address and serve through the Straumann brand alone,” said Straumann President and CEO Beat Spalinger in a statement.

He said that, through a dual brand strategy involving Neodent’s and Straumann’s premium brands, his company hopes to unlock the full potential of the South American markets.

The acquisition of Neodent is also seen as the first step to capturing growth opportunities for the company worldwide, which has struggled to maintain momentum in European and Asian markets, where sales in the first quarter of this year fell by up to 6 per cent.

Straumann officials said in Amsterdam that, owing to the high growth potential of dental implants in the BRIC countries, the company aims to double its size in terms of net revenue and employees by 2020. In order to achieve this goal, the company will be reshuffling its global organisation in the upcoming months by creating a number of new positions at executive management level.

Straumann currently employs more than 2,400 people at 18 subsidiaries worldwide.