Washington, DC 7/19/18—Danaher has announced that it intends to spin-off its Dental segment into a publicly traded company. The Dental business, made up of the Nobel Biocare, Ormco, and KaVo Kerr businesses, recorded $3 billion in revenues last year and has 12,000 employees. "Through recent growth investments and productivity initiatives, combined with the team's strong commitment to continuous improvement and the Danaher Business System, the Dental segment is in a better position today to accelerate its growth trajectory, drive continued margin expansion, and pursue M&A opportunities,” commented Danaher President and CEO Thomas P. Joyce. The deal will be tax-free to shareholders. Amir Aghdaei, the current Group Executive responsible for the segment, will become president and CEO of the new company. Dan Daniel, executive vice president at Danaher, and Daniel Raskas, senior vice president, Corporate Development at Danaher, will also serve on the spin-off’s Board. In addition, Danaher Executive Vice President and CFO Dan Comas will be a special advisor. The transaction is expected to be completed in the second half of 2019. Accounting for the spin-off, “remaining Danaher” (the company as it will exist once the Dental business is spun-off) would have had 2017 annual revenues of $15.5 billion and consist of three segments: Diagnostics (37% of revenues), Life Sciences (37%) and Environmental & Applied Solutions (26%). In 2017, it would have recorded EBITDA margins of over 20 and adjusted gross margins of around 55%. Remaining Danaher will be more weighed toward consumables, which will account for 70% of revenues, compared to about 65% currently, and direct distribution, with 75% of company products directly distributed, compared to 70% currently. Comprising the Dental business, Nobel Biocare provides dental restoration products, Ormco specializes in orthodontics, and KaVo Kerr sells dental office equipment and suppliers. In 2017, the Dental business recorded gross margins of approximately 55% and EBITDA margins in the high-teens. In July 2016, Danaher completed the spin-off of three of its more industrially focused businesses to form publicly held Fortive (see IBO 7/31/16). Danaher aims to derive similar benefits with this spin-off, organizing businesses with similar characteristics each into their own company with higher-growth companies making up "remaining Danaher."