The successful sale of ZimVie’s spine division to investment firm H.I.G. Capital has triggered many noteworthy developments in the medical space that have resulted in the formation of spinouts.
It was anticipated that this $375 million acquisition, which was revealed in December, would establish Highridge Medical as a distinct business with its main office situated in Colorado. Highridge’s main focus will be on producing fixation systems, screw and plate implants, bone-healing technology, among numerous other products related to the spine.
Glen Kashuba, the CEO of Highridge, indicated belief in the company’s solid foundation for spine treatments, which is supported by a wealth of clinical data and favorable patient outcomes. In order to meet the vast range of demands of patients throughout the globe, Kashuba outlined Highridge’s steadfast dedication to improving spine care via strategic investments in R&D, encouraging product innovation, and broadening its product offerings. He emphasized the importance of the collaboration with H.I.G., predicting significant advantages for surgeons, distributors, and patients above all.
The main firm, ZimVie, was formed barely more than a couple of years ago after Zimmer Biomet’s dentistry and spine departments were combined. After the sale of the spine business is completed, ZimVie will be able to refocus as a pure-play company that will only offer digital services specifically designed for dental professionals, biomaterial grafts, and denture implants. Together with this strategic shift, ZimVie has relocated its global headquarters to Florida, in Palm Beach Gardens, signifying a deliberate shift to the business’s new operating model.
Vafa Jamali, the president and CEO of ZimVie, thanked everyone for their efforts to the spine business’s smooth disposal. Speaking about the company’s future direction, Jamali was upbeat, emphasizing its continued commitment to promoting dental care innovation while also simplifying its organizational framework to optimize shareholder value.
As part of the deal, ZimVie will get a $60M promissory note along with $315M in cash. A large amount of these earnings will be used by ZimVie to pay down current debt, which will simplify the balance sheet and strengthen its financial situation. The company’s dental product portfolio is expected to generate net sales of more than $455 million annually. Although ZimVie sold off its spine segment, the company’s full-year 2023 financial report showed a drop in sales that was a result of ceased activities. However, adjusted net income remained positive, highlighting the durability of ZimVie’s entire business model. This segment recorded a net loss, principally due to a write-down of the spine group’s value.
