Zimmer Biomet to combine spine, dental businesses to form company called NewCo
Zimmer Biomet Holdings Inc. has announced its intent to spin off its spine and dental businesses to form a new company to “optimize resource allocation and drive toward market leadership,” according to a press release.
The company, NewCo, will be independent and publicly traded, and will enhance focus on Zimmer Biomet’s high-growth and high-priority areas, which include knee, hip, sports medicine, extremities and trauma, and craniomaxillofacial and thoracic.
The company expects this planned, tax-efficient spin-off to create growth and improve value for all stakeholders, according to the release.
“As part of the third phase of Zimmer Biomet’s ongoing transformation, we are changing the complexion of our business through active portfolio management in order to accelerate growth and drive value creation,” Bryan Hanson, president and CEO of Zimmer Biomet, said in the release. “For Zimmer Biomet, the transaction is an important step toward shifting our portfolio mix to higher-growth markets where we have a clear path to leadership and right to win. We believe NewCo will thrive as an independent company with prioritized capital allocation to pursue strategic growth opportunities and investment strategies in the large and growing spine and dental markets. This planned transaction underscores our commitment to ensuring our long-term priorities remain aligned with shareholders’ best interests as we drive the business forward to meet customer needs and advance our mission to alleviate pain and improve the quality of life for people around the world,” Hanson added.
The company has targeted mid-2022 for completion of the spin-off, according to the release.