Zimmer Biomet
(NYSE: ZBH)
announced today that it has completed its $1.2 billion purchase of Paragon 28.
Announced in January, the deal represents a significant play in the foot and ankle treatment space for ZB. Established in 2010, Paragon 28 has a wide suite of surgical offerings and product systems spanning all major foot and ankle segments, including fracture and trauma, deformity correction, and joint replacement.
Zimmer Biomet officials say the acquisition makes sense for several reasons:
- It expands Zimmer Biomet’s foot and ankle offerings while boosting existing fracture and trauma, and joint replacement portfolios;
- ZB gets a dedicated foot and ankle sales channel through Paragon 28’s specialized sales organization;
- Zimmer Biomet’s global footprint and existing infrastructure will help drive adoption of Paragon 28’s portfolio;
- There’s an expectation that it will speed up ZB’s WAMGR (weighted average market growth rate);
- It also accelerates opportunities in the rapidly growing ambulatory surgery center space.
Said CEO Ivan Tornos: “This combination expands our leadership in the foot and ankle segment, one of the highest growth specialties in musculoskeletal care. Together, we will drive innovation at scale and leverage the power of Paragon 28’s dedicated foot and ankle commercial channel to help advance our mission to alleviate pain and improve the quality of life for people around the world.”
