Envista Holdings IPO: What You Need To Know

Envista Holdings Corporation, a dental products company that's a spinoff of Danaher Corporation DHR, is expected to go public this week.

The IPO Terms

California-based Envista has filed to offer 26.768 million shares of its common stock in an IPO, according to the S-1/A registration statement. The company expects to price the offering in the range of $21-$24. At the mid-point of the estimated price range, the offering is likely to raise gross proceeds of $602.28 million.

The company's shares have been approved for listing on the NYSE under the ticker symbol "NVST."

Following the completion of the offering, Danaher will continue to own a majority of voting power of Envista's outstanding shares.

JP Morgan, Goldman Sachs and Morgan Stanley are lead managers for the offering. The issue will be co-managed by Baird, Evercore ISI and Jefferies.

The Company

Envista has notable market positions in the different segments of the dental product industry such as implants, orthodontics and digital imaging technologies.

It supplies dental consumables, equipment and services to dental professionals, covering about 90% of dentists' clinical needs for diagnosing, treating and preventing dental conditions as well as improving aesthetics.

Its operating companies serve over 1 million dentists in over 150 countries.

Envista operates in an attractive and growing sector within healthcare, with an estimated total product sales of about $23 billion in 2018. The sector has been growing at an average, annual mid-single digit rate over the last three years.

The Finances

Of the revenues of $2.85 billion it reported for 2018, about 70% came from sales of consumables, services and spare parts.

About 23% of the 2018 sales came from high-growth markets, defined as developing markets with extended period of accelerating growth in GDP and infrastructure. In 2018, the company reported a very modest year-over-year revenue growth of 1.2%.

Net earnings for the fiscal year 2018 were $230.7 million compared to $301.1 million in 2017.

Revenues for the six months ended June 28 were $1.37 billion, down from $1.41 billion in the same period last year. Net earnings declined from $115.4 million to $99.4 million.

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