Osstem Implant headquarters in Seoul / Yonhap

Osstem Implant, owned by the joint consortium of MBK Partners and UCK Partners, has recently acquired Brazil's third-largest dental implant firm, Implacil de Bortoli, aiming to make a foray into the fast-growing Latin American dental market, according to industry sources.

A source directly involved in the deal told The Korea Times Thursday that Osstem Implant signed a stock purchase agreement (SPA) in mid-April to acquire a 100 percent stake in Implacil de Bortoli for $89.8 million.

Given that the Brazilian dental implant company holds over 14 percent of the South American country's market share, the deal is seen as Osstem Implant's "Bolt-on strategy" that not only targets expanding its market share in Latin America, one of the fast-growing markets, but also strengthens the firm's competitiveness in the U.S. market.

Established in 1982, Implacil de Bortoli is the third-largest company in the Brazilian implant market as of 2022. With a portfolio of approximately 1,300 product items, the company offers a complete dental solution, ranging from dental implants and prosthetic components to surgical kits and biomaterials. The company has an annual production capacity of 9.1 million units and operates five distribution centers covering over 13,000 clients nationwide. In Sao Paulo, Implacil de Bortoli is a leading player with a 26.8 percent market share.

Funding for the transaction is expected to be provided through surplus cash from Osstem Implant's U.S. subsidiary, Hiossen, and the deal closing is expected by the end of May.

The consortium of private equity firms MBK Partners and UCK Partners acquired a 99.3 percent stake in Osstem Implant through a public tender offer on the Kosdaq market last year.

Osstem Implant is the world's third-largest company in terms of revenue. Its overseas market sales to 92 countries across the world account for nearly 70 percent of the total earnings. Last year, Osstem Implant's annual revenues amounted to $874 million, combining from the Korean market and the overseas market, a 14.7 percent jump compared to the previous year.