Zimmer Biomet to buy spine device specialist LDR Holding for $1 bn
08 June 2016
US medical device company Zimmer Biomet Holdings Inc yesterday struck a deal to buy its rival LDR Holding Corp for about $1 billion deal in order to expand in the $10 billion spine market.
Under the deal that has approved by the boards of both companies, ding shares Zimmer Biomet will pay $37.00 per share in cash.
Zimmer Biomet plans to finance the transaction using cash on hand and existing revolving credit facility and plans to issue $750 million of senior unsecured notes to repay the credit facility.
Post closing, LDR will be merged with Zimmer Biomet's Spine & CMF category and will be led by Adam Johnson, Zimmer Biomet Group president, Spine, CMF and Thoracic, and Dental.
Zimmer Biomet plans to complement the spine business headquarters in Broomfield, Colorado by maintaining a significant presence in LDR's technology hubs of Texas and France.
"This highly strategic and complementary transaction will enhance Zimmer Biomet's innovation leadership in musculoskeletal healthcare by adding a premier spine platform to our portfolio of solutions," said David Dvorak, president and CEO of Zimmer Biomet.
Christophe Lavigne, co-founder, chairman, president and CEO of LDR, said, "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.''
Founded in France in 2000, LDR focuses on designing and selling proprietary surgical technologies for the treatment of patients suffering from spine disorders.
Its core products are the Mobi-C cervical disc replacement device and MIVo. Its portfolio of products includes a range of devices to support lumbar and cervical fusion procedures.
The Mobi-C and MIVo devices are designed to enable products that are less invasive, provide greater intra-operative flexibility and simplified surgical techniques compared to existing alternatives.
In August 2013, LDR received approval from the US Food and Drug Administration for the Mobi-C cervical disc replacement device, the first and only cervical disc replacement device to receive FDA approval to treat both one-level and two-level cervical disc disease.
Mobi-C generated sales of about $17 million in the quarter ended 31 March.
Zimmer Biomet said that cervical disc replacement is the fastest-growing segment within the $10 billion spine industry.
Founded in 1927 and based in Indiana, Zimmer Biomet is a leader in musculoskeletal healthcare.
It designs, manufactures and markets orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products.
It has operations in more than 25 countries and sells its products in more than 100 countries.