ZimVie announces definitive agreement to sell spine business to HIG Capital
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Key takeaways:
- ZimVie has announced a definitive agreement to sell its spine business to alternative investment firm H.I.G. Capital.
- ZimVie will receive $375 in total consideration for the transaction.
ZimVie Inc. has announced a definitive agreement to sell its spine business to H.I.G. Capital, a global alternative investment firm, for $375 million in total consideration, according to a press release.
According to the release, ZimVie intends to use the proceeds to reduce debt and streamline operations.
After closing, ZimVie will receive $375 million in total consideration, which includes $315 million in cash and a $60 million promissory note that will accrue 10% interest per annum, compounded semi-annually, according to the release.
“We are pleased to reach an agreement with H.I.G. Capital for the strategic sale of our core spine, motion preservation and EBI bone healing portfolio and services,” Vafa Jamali, president and CEO of ZimVie, said in the release. “This transaction is intended to create a leaner, more focused ZimVie with a leading position in attractive and growing global dental markets,” Jamali said.
“The ZimVie spine business has a solid foundation with a market-leading product portfolio, strong surgeon satisfaction and exceptional patient outcomes,” Mike Gallagher, managing director at H.I.G. Capital, said in the release. “We see a tremendous opportunity to partner with the spine leadership team to support best-in-class innovation and robust commercial execution. The combination of H.I.G.’s expertise in the medical device space and the capabilities of ZimVie spine management will create an innovation engine for distributors, surgeons and patients,” Gallagher added.
ZimVie expects the transaction to close in the first half of 2024, according to the release.
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