More recently, the company even had to reduce its adjusted full-year profit guidance by 20%.Īs you'd expect, management has made promises to take action to correct the situation. Management has struggled to realize the expected synergies from the deal and has been forced to book a couple billion-dollar write-offs. Unfortunately, things haven't exactly gone according to plan. The idea was that increased scale and cross-selling would create a business that was more valuable than the sum of its parts. A few years ago, Dentsply paid $5.5 billion in stock to buy Sirona and became one of the largest suppliers of professional dental products in the world. What can explain such a horrendous move for a predictable business? The answer is that the company is having huge problems digesting a massive acquisition. Shareholders of this business have been forced to weather a 40% drop in the stock price since the start of the year. ![]() Unfortunately, that fact hasn't helped investors in Dentsply Sirona at all this year. ![]() No smiles after this mergerīrian Feroldi (Dentsply Sirona): The dental supply business is normally a boring but highly predictable industry. Piggy bank sitting atop a pile of dollar bills in large denominations, covered in coins.
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