Straumann Group invests in DrSmile, a leading provider of clinician-led clear-aligner treatment solutions in Germany
- Straumann acquires a significant majority stake in DrSmile and commits to an additional investment to finance growth, with the ultimate goal of a full acquisition
- DrSmile combines direct-to-consumer (DTC) marketing expertise with doctor-led treatment and complements Straumann’s existing clear-aligner business
- Combined companies will offer growth opportunities to dentist partners and convenient, clinician-based aligner treatment solutions to patients
Basel/Berlin, 9 July 2020: The Straumann Group has signed an agreement with DrSmile, one of the fastest-growing providers of orthodontic treatment solutions in Europe, that will enable both companies to unlock significant further potential in the market for esthestic dentistry.
In return for an initial purchase consideration, Straumann will receive a majority stake in DrSmile and has committed to a substantial further investment to help finance growth through to a full acquisition in the future. The parties have also agreed to a put/call-option mechanism for the remaining stake as well as an earn-out based consideration. The financial details were not disclosed.
DrSmile will remain a stand-alone business operationally, led by its founders, and will continue to operate from its headquarters in Berlin. The transaction is expected to close later in the third quarter and will provide DrSmile with capital to expand at a crucial time in this fast developing segment. Straumann will benefit from DrSmile’s expertise in DTC marketing to support its clear-aligner business.
The global market for clear aligners has grown more than 20% on average over the past three years and continues to offer strong growth opportunities. It is increasingly driven by direct-to-consumer marketing and online service providers who offer treatment packages. DrSmile specializes in communicating the benefits of clear aligners to consumers and offering a complete treatment solution that relies on experienced local clinicians for all the clinical aspects. This supports treatment quality, optimal outcomes and lasting patient satisfaction, which have been keys to the company’s success and dynamic growth over the past three years.
DrSmile has built up a broad network of partner practices across Germany, which is open for qualified dentists to join. The company has also started to expand internationally, in Austria, and Spain. DrSmile attracts patients seeking esthetic dental treatment to its website through targeted advertising on conventional, social and other media channels. Based on the patient’s situation, expectations and location, the company arranges treatment in collaboration with a local partner dentist. It provides the digital workflow, aligners and materials needed for the treatment, in addition to support services for the dentist.
Straumann Group CEO, Guillaume Daniellot, explained: “DrSmile is an entrepreneurial, innovative company that complements our clear-aligner business with valuable DTC marketing expertise. Together, we will offer dentists significant opportunities to grow their practices through additional channels and, importantly, we will provide convenient, clinically-based, quality treatment to patients”.
Jens Urbaniak andChristopher von Wedemeyer, co-founders of DrSmile, added: “The dental market is undergoing a rapid and fundamental shift towards digitalisation and customer centricity. This has been accelerated by the ongoing COVID pandemic in recent months. The combination of our digital, doctor-led approach with Straumann, a market leader with an extensive network and production expertise, creates a perfect partnership to maintain high growth momentum”.
Founded in 2017 in Berlin, DrSmile is the fastest-growing European patient-centered dental brand for modern tooth correction. Built around doctor-led care, it provides dental clinicians with a modern orthodontic platform enabled by proprietary digital technology that enables faster, more predictable and affordable care for patients. Building on the emergence of production innovations, such as 3D printing and digital workflows, DrSmile is bringing positive change to the dental market following the strong belief that a smile has the power to change lives. With a fast growing integrated doctor network of more than 50 practices, DrSmile offers its innovative aligner treatment solution across Germany and Austria, and is rapidly expanding into several European countries. DrSmile employs approximately 200 people and is headquartered in Berlin, Germany.
The Straumann Group (SIX: STMN) is a global leader in tooth replacement and orthodontic solutions that restore smiles and confidence. It unites global and international brands that stand for excellence, innovation and quality in replacement, corrective and digital dentistry, including Anthogyr, ClearCorrect, Dental Wings, Medentika, Neodent, Straumann and other fully/partly owned companies and partners. In collaboration with leading clinics, institutes and universities, the Group researches, develops, manufactures and supplies dental implants, instruments, CADCAM prosthetics, biomaterials and digital solutions for use in tooth replacement and restoration or to prevent tooth loss.
Headquartered in Basel, Switzerland, the Group currently employs more than 7000 people worldwide and its products, solutions and services are available in more than 100 countries through a broad network of distribution subsidiaries and partners.