ZimVie Completes Sale of Spine Business to an Affiliate of H.I.G. Capital for $375 Million Establishes Pure-Play Dental Business
Read Time 3 MinutesZimVie Inc. (Nasdaq: ZIMV), a global life sciences leader in the dental market, announced that it has closed the previously communicated sale of its Spine business to an affiliate of H.I.G. Capital for $375 million in total consideration, including $315 million in cash and a $60 million promissory note.
ZimVie is a global life sciences leader in the dental market that develops, manufactures, and delivers a comprehensive portfolio of products and solutions designed to support dental tooth replacement and restoration procedures. From its headquarters in Palm Beach Gardens, Florida, and additional facilities around the globe, ZimVie works to improve smiles, function, and confidence in daily life by offering comprehensive tooth replacement solutions, including trusted dental implants, biomaterials, and digital workflow solutions. As a worldwide leader in this space, ZimVie is committed to advancing clinical science and technology foundational to restoring daily life.
“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 Vafa Jamali, President and Chief Executive Officer.
“I could not be more excited for the future of our company as we continue to invest in differentiated solutions for Dental patients and providers in our most attractive end markets, while optimizing our structure to deliver value for our shareholders.”
Under the terms of the agreement, ZimVie will receive $375 million in total consideration, comprised of $315 million in cash, subject to certain customary adjustments as set forth in the agreement, and $60 million in the form of a promissory note that will accrue interest at a rate of 10% per annum, compounded semi-annually, payable in kind, subject to a maturity no later than five and a half years from today’s closing.
As previously communicated, ZimVie expects to achieve an annualized financial profile of $455+ million in Net Sales, and a 15%+ adjusted EBITDA margin(1) one year following the close of the deal. ZimVie intends to immediately pay down $275 million of outstanding debt, leaving total debt of approximately $234 million, and estimated cash of approximately $66 million as of April 2, 2024. (1) This is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts.
Globally, ZimVie trained 100,000+ dental professionals across its six institutes and virtual programs in 2024. Almost a year ago, ZimVie opened the newest of its ZimVie Institute locations right here in South Florida located in Palm Beach Gardens. ZimVie Institute South, features over 11,000 sq. ft of dedicated education and training space, with state-of-the-art facilities offering life-like simulated patient models, a cadaver lab, and fully integrated digital workflow with 3D printing capabilities, REALGUIDE Software, and a mill.
ZimVie’s newest facility expands its Institute model to allow the company to host cadaver and simulation courses that teach advanced surgical and restorative techniques for full mouth reconstructions. It also hosts comprehensive training events on everything from practice management to digital workflow training using ZimVie’s RealGUIDE software. Located at ZimVie Dental’s headquarters, the facility is also home to product manufacturing, allowing Institute guests the opportunity to see firsthand where and how ZimVie products are made.
For more info on ZimVie, please visit www.zimvie.com/en
