ZimVie to Shed Spinal Business to Focus on Dental
The Westminster, Co-based company is selling its spine business to HIG capital for $375 million.
December 18, 2023
What happens once a spinout spins a company out?
That question is being answered by ZimVie – as the company, which was spun off from of ZimmerBiomet in 2021, is selling its spine business to HIG Capital for $375 million.
The new deal sets ZimVie up as a pure play dental company and is expected to close in the first half of 2024.
Under the terms of the agreement, upon the closing of the transaction, ZimVie will receive $375 million in total consideration, comprised of $315 million in cash, and $60 million in the form of a promissory note that will accrue interest at a rate of 10% per annum, compounded semi-annually, payable in kind.
“Our spine business possesses an innovative portfolio, and is well positioned to continue to improve under this new ownership,” said Vafa Jamali, President and CEO, in a release. “Similarly, this transaction provides the capital to fund go-forward growth for dental’s commercial and innovation platforms while reducing ZimVie’s leverage profile. This transaction is intended to create a leaner, more focused ZimVie with a leading position in attractive and growing global dental markets.”
This is the second high-profile medtech spinoff this month. A little more than a week ago, Edwards Lifesciences said that it was shedding its critical care business in 2024.
The Irvine, CA-based company said the critical care business is focused on integrating a full range of Smart monitoring technologies onto the seventh generation of its HemoSphere platform creating a unique offering of enhanced recovery tools.
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