US dental implant company Keystone Dental Inc., owned by Israel's Accelmed Growth Partners, has entered into a definitive agreement to merge via a stock exchange transaction with Israeli company Paltop Advanced Dental Solutions Ltd. Paltop is an emerging Caesarea-based dental implant company with expertise in precision manufacturing and state-of-the-art digital dentistry solutions.
The companies will merge operations, forming a global dental implant player with nearly $50 million in combined revenue offering an expanded product portfolio that will compete in both the premium and value market segments. Accelmed Growth Partners together with Poalim Capital Investments and The Phoenix Holdings Ltd. (TASE: PHOE1 ; PHOE5 ) will inject $20 million in capital investment into the merged company, principally dedicated to growth acceleration initiatives.
The merger is part of Accelmed's platform deal strategy, which creates leading med-tech players by merging commercial platforms with small innovative growth companies, predominantly from Israel.
Other terms of the agreement were not disclosed. Israel's Accelmed acquired Keystone six months ago for $30 million.
Keystone CEO Russ Bonafede said, "After an exhaustive search of potential partners, we are very pleased to be combining forces with Paltop. Keystone targeted Paltop because they bring one of the world's most efficient precision machining operations, innovative end-to-end digital solutions for implant dentistry, and an exceptionally high-quality product portfolio that represents a strong value proposition for clinician users. We look forward to working with the Paltop management team, led by the Topaz family, to create a successful and highly responsive dental implant enterprise."
Paltop chairman Sam Topaz said, "We believe that the combination of Paltop Israel with the American Keystone Group is occurring at the ideal time for both our companies and for the dental market. Paltop has been developing new and innovative technologies for the past decade and Keystone is a company with a strong brand and a highly-qualified sales & marketing team led by skillful and experienced management. There are two main goals to this merger. First is to establish a fast growing global player in the field of dental implants, and second to realize our vision to lead the digital transformation of dental treatments."
Accelmed managing partner and Keystone chairman Dr. Uri Geiger said, "We believe that the combination of Keystone's strong brand, commercial infrastructure, and the newly installed top tier management team led by Russ Bonafede, together with Paltop's manufacturing capabilities and innovation, will create one of the worlds' fastest growing dental implant companies. Together with its co-investors, Accelmed invested $50 million in the combined company and we look forward to working with the collective management team in the years to come."
Published by Globes, Israel business news - en.globes.co.il - on January 6, 2019
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