A Medical Device Daily

Remedent (Deurle, Belgium), a company specializing in oral care and cosmetic dentistry products, said it has restructured its OTC division, consistent with its strategic plan to separate the OTC division from the Professional/veneer business and the organization as a whole.

This restructuring will provide both additional cash to Remedent as well as the elimination of all current and future overhead of the OTC division, the company said.

The restructuring involved a sale of roughly half the interest of the OTC division led by Robin List, the company's former CEO and director to List and Concordia Fund BV, a non-affiliated foreign investment firm. The assets, liabilities and income/expense of the OTC division will ultimately be held by a Dutch holding company, Remedent BV, which will be led by List with current Remedent directors maintaining board control of this BV.

The BV will be responsible for all operating overhead expenses on a go forward basis as well as future financing and growth of the OTC division, Remedent said. The company plans on consolidating both divisions in its financial statements based on its percentage of ownership after the sale as well as its board control over the BV subsidiary. Concordia Fund-BV, will provide financing and stewardship for the ongoing operations of the BV group. Concordia Fund-BV has agreed to invest working capital of 11 million into the BV to strengthen its financial resources that will be reflected in our consolidated balance sheet.

"This restructuring will give us the best of both worlds," said Guy De Vreese, chairman of Remedent. "We can now aggressively pursue our Professional/veneer business both with Den-Mat principally in the [U.S.] and by ourselves in promising growth territories such as China, Australia and Western Europe. At the same time, Remedent also gets to share in the upside of the OTC business without the financial responsibility."

In connection with this sale, List resigned as director and CEO of Remedent, enabling him to focus on the management of the OTC business, namely OTC BV and its subsidiaries. De Vreese, will lead the company as CEO. In connection with the sale, List also returned the shares he owns in Remedent back to the company that will result in a 4% reduction in the number of outstanding shares of Remedent.