Dental equipment manufacturer Planmeca has agreed to acquire KaVo Treatment Unit and Instrument business from Envista Holdings for around $455m.

The deal consists of a potential earn-out payment of up to $30m.

Under the deal, Planmeca will hold a 51% stake in the KaVo Treatment Unit and Instrument business. The remaining 49% stake will be owned by Heikki Kyöstilä as a private individual.

KaVo Treatment Unit and Instrument business is engaged in the development, manufacturing and supplying of dental treatment units and instruments.

Based in Biberach, Germany, KaVo Treatment Unit & Instruments has expertise in the manufacturing of advanced dental equipment.

With around 1,500 employees, KaVo has operations in more than 60 countries.

Envista Holdings CEO Amir Aghdaei said: “Envista is focused on its strategic priorities to build and optimize a more consumables and digitally enabled, workflow-oriented portfolio.  This sale will better position Envista to invest organically and inorganically and expand our product offerings within these areas.”

The acquisition is said to complement Planmeca’s extensive product portfolio, in addition to enhancing the growth and competitiveness of both companies.

The acquired business generated revenues of around $357m and $317m in fiscal years 2019 and 2020.

Planmeca Group owner, founder and CEO Heikki Kyöstilä said: “This partnership will make us a very strong player in the dental field. I believe our companies are a great match – we share the same standards and passion for high technology, quality and innovation, and for offering a complete digital workflow for our customers.”

Subject to the satisfaction of certain customary closing conditions including the receipt of applicable regulatory approvals, the deal is expected to be completed by the end of this year.

J.P. Morgan Securities served as financial advisor and Kirkland & Ellis acted as legal advisor to Envista on the deal.