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Zimmer Biomet to acquire LDR
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Zimmer Biomet Holdings Inc. and LDR Holding Corporation announced the board of directors for both companies have approved a definitive agreement under which Zimmer Biomet will commence a tender offer to acquire all of the outstanding shares of LDR for $37 per share in cash. This implies a transaction value of approximately $1 billion, according to a press release.
The transaction, which is expected to close in the third quarter of 2016, is subject to customary closing conditions.
LDR designs and commercializes technologies that reportedly make surgical procedures easier to perform and provides improved clinical outcomes in the treatment of spine disorders. The addition of LDR is expected to bolster Zimmer Biomet’s presence in the global spine market and provide Zimmer Biomet with an immediate and leading position in the cervical disc replacement and minimally invasive surgery segments. The combination is expected to meaningfully accelerate the growth of Zimmer Biomet’s spine business, as well as accelerate the future growth of its overall business, according to the release.
“This highly strategic and complementary transaction will enhance Zimmer Biomet’s innovation leadership in musculoskeletal health care by adding a premier spine platform to our portfolio of solutions,” David Dvorak, president and chief executive officer (CEO) of Zimmer Biomet, said in the release. “This combination is consistent with our goal of driving meaningful growth across all musculoskeletal markets with innovative products, technologies and services that enhance patient outcomes. The talented LDR team uniquely shares our deeply held commitment to innovating in a manner that restores mobility and alleviates pain for patients around the world, and we look forward to welcoming them to Zimmer Biomet. We are confident that the combination of Zimmer Biomet’s spine division and LDR will create a spine company with the scale, talent and technology portfolio to become a leader in the $10 billion global spine market.”
Christophe Lavigne, co-founder, chairman, president and CEO of LDR, said in the release, “We are delighted with this combination, which will further our commitment to improving spine care by providing greater access to our innovative product offerings for patients around the world, while offering our stockholders immediate cash value. We have great respect for the Zimmer Biomet team, who shares our passion for innovation as well as our commitment to patients and providers. We look forward to working closely with Zimmer Biomet to achieve a seamless transition and create lasting value for all of our stakeholders.”
Zimmer Biomet reiterated, as noted in the release, its previously provided 2016 revenue guidance of an increase of 2% to 3% compared to adjusted pro forma full year 2015 on a constant currency basis. However, it will update its revenue guidance to reflect this transaction at or about the time of closing.
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