ZimVie Sells Spine Business for $375 Million

ZimVie Inc. (Nasdaq: ZIMV), a leading global life sciences company in the dental market, has announced the completion of its Spine business’s sale to an affiliate of H.I.G. Capital.

The deal, finalized for a total consideration of $375 million, includes $315 million in cash and a $60 million promissory note. It is the culmination of months of cooperation between ZimVie and H.I.G. Capital, along with combined teamwork from ZimVie’s global Spine team. Company President and CEO Vafa Jamali thanked everyone involved for their contributions.

“The completion of the sale of our Spine business is the culmination of months of partnership with H.I.G. Capital and years of commitment from our global Spine team members; I would like to thank everyone for their immense contributions”, said Jamali. The CEO further expressed his excitement about ZimVie’s future, highlighting the company’s plans to continue investing in specialized solutions for dental patients and providers while aiming to provide value for their shareholders.

Under the agreement, the payable promissory note of $60 million will accrue a semi-annual interest rate of 10%. It has a maturity period of five and a half years from the sale’s close.

ZimVie’s financial projection, as previously communicated, aims to achieve $455+ million in Net Sales and a 15%+ adjusted EBITDA margin. This is expected to happen within the first year after the closure of the deal. Alongside this, ZimVie plans to immediately pay down $275 million of outstanding debt, reducing their total debt to approximately $234 million and estimated cash of approximately $66 million as of April 2, 2024.

ZimVie develops, manufactures, and delivers a broad portfolio of products and solutions designed to support dental tooth replacement and restoration procedures.

Source: Press Release