DENTSPLY International Inc., a global leader in professional dental products, today announced that it has reached agreement with the applicable works councils in Germany to proceed with restructuring portions of its laboratory business, consistent with its earlier announcement of September 17, 2014. The realignment of the lab business is designed to increase emphasis on innovative prosthetic materials while exiting portions of the lab equipment and fabrication businesses. The majority of this restructuring effort will be implemented during the remainder of fiscal 2015 and 2016.
The Company expects to incur total costs in the range of $33 to $38 million related to this initiative, the majority of which are expected to be recorded in the fiscal second quarter of 2015. It is anticipated that approximately 85% of these costs will be cash outlays, including costs related to severance and employee related obligations. This initiative impacts certain manufacturing operations from two sites in Germany, one of which will be closed and another that will be downsized. The Company noted that this action is part of its broader efficiency program and the anticipated impact was included in the adjusted earnings guidance as previously provided (which excludes restructuring charges).