DENTSPLY International Inc. (Nasdaq:XRAY) announced that it has entered into a strategic partnership with DIO Corporation (KOSDAQ – 039840), based in Busan, South Korea. DIO operations include a state-of-the art manufacturing facility in Busan, producing dental implant devices and associated accessories, which are marketed in numerous countries including many emerging markets. DENTSPLY's investment includes an initial ownership of less than 20% of the outstanding shares of DIO Corporation, with an additional investment in debentures, which may be converted into common shares after a one year period. Jin Cheol Kim and Jin Baek Kim, co-founders of DIO, will retain a significant ownership in the Company and remain active in the management and operations of the business.
Bret W. Wise, DENTSPLY's Chairman and Chief Executive Officer stated, "We are very pleased to enter this strategic partnership with DIO Corporation and look forward to working closely with their management team. Together our companies have world-class manufacturing capabilities for dental implant production in both Europe and Asia. This will allow us to better meet a broader range of customer needs, particularly in emerging markets. There is also a very strong cultural fit between our companies, as DIO's management team shares our commitment to leadership in innovation and quality."
Jin Cheol Kim, DIO's Chairman stated, "DIO is well positioned within the South Korean dental implant market and has already begun selling products in many other markets around the world. We are delighted to be partnering with DENTSPLY and look forward to working together to bring new options to our current and future customers."
This transaction includes synergistic opportunities for both companies and is expected to be slightly accretive to DENTSPLY's earnings in the first year excluding any related transaction adjustments and costs. This transaction is expected to close quickly.
DENTSPLY International Inc.