AstraZeneca announced that it has agreed to sell its Astra Tech business to DENTSPLY for approximately $1.8 billion in cash.

Astra Tech, headquartered in Mölndal, Sweden, has two main business divisions: a dental division, which is engaged in the research, development, manufacturing and marketing of dental implants, and a healthcare division, a business focused on medical devices for use primarily in urology and surgery. In 2010, Astra Tech recorded worldwide revenue of $535 million and normalised EBITDA of $105 million, with net assets valued at approximately $0.3 billion at May 2011 rates of exchange.

The transaction is anticipated to be completed during the second half of 2011, subject to receipt of relevant regulatory clearances. Upon closing, a gain will be recorded as “other operating income” in the AstraZeneca profit and loss account. The gain will be considered a “significant item” to be excluded from Core financial measures. As a result, there will be no impact on the company’s full year 2011 guidance for Core earnings per share.

David Brennan, chief executive officer, AstraZeneca said: “Following a comprehensive strategic review, we believe this transaction represents an excellent outcome for AstraZeneca shareholders. The high degree of interest and the competitive nature of this process is evidence of the value that the employees of Astra Tech have built in the marketplace. I want to thank them for their contribution and believe they are well placed to build upon this successful foundation under DENTSPLY’s ownership.”

Astra Tech AB, a company in the AstraZeneca group, is a global leader in dental and healthcare (urological and surgical) products, services and support. The ongoing research and development is aimed at finding new ways to support caregivers and improve quality of life for patients worldwide.

DENTSPLY designs, develops, manufactures and markets a broad range of professional dental products including dental implants, endodontic instruments and materials, orthodontic appliances, restorative materials, preventive materials and devices, and prosthetic materials and devices.

AstraZeneca is a global, innovation-driven biopharmaceutical business with a primary focus on the discovery, development and commercialisation of prescription medicines for gastrointestinal, cardiovascular, neuroscience, respiratory and inflammation, oncology and infectious disease.