Zimmer Biomet (NYSE:ZBH) announced today that it completed the spinoff of ZimVie, its former dental and spine businesses.
Shares of ZimVie started trading on the Nasdaq market today under the “ZIMV” ticker. ZIMV shares were down more than 26% to $28 apiece by the afternoon. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down slightly.
Warsaw, Indiana-based Zimmer Biomet previously announced the spinoff of its spine and dental businesses in February 2021. In that same month, ZB said Vafa Jamali would serve as the CEO of the spinoff.
The new 2,700-employee company has its headquarters in Westminster, Colorado. It’s expecting revenues to stay flat at about $1 billion this year as it pays down debt and fixes operational issues in the spine business, Jamali told MassDevice and Medical Design & Outsourcing shortly after ringing in the Nasdaq today.
“We’re going to have a year of resetting and sorting out all these pieces. And then you’ll see us accelerate on some of the more innovation-focused areas and goals,” Jamali said. (Go to MDO to read much more from Jamali — including where he sees ZimVie innovating.)
Last month, when announcing its fourth-quarter earnings, Zimmer Biomet confirmed the planned completion date for the ZimVie spinoff was March 1, 2022.
“The spinoff of ZimVie marks a major milestone in the active portfolio management of Zimmer Biomet as we continue to strengthen our position as a global leader in the medtech space,” ZB CEO Bryan Hanson said in a news release. “We are confident that this transaction will create shareholder value for both companies and will allow us to increase our focus and enhance revenue growth for our core businesses.”
Zimmer Biomet achieved the spinoff by distributing 80.3% of the shares of ZimVie to holders of Zimmer Biomet common stock today, March 1, 2022, with Zimmer Biomet stockholders receiving one share of ZimVie common stock for every ten shares of Zimmer Biomet common stock held at the close of business on the record date of Feb. 15, 2022.
Fractional shares of ZimVie common stock will not be distributed to Zimmer Biomet shareholders and will instead be aggregated and sold in the open market. Net proceeds from the sale of fractional shares will be distributed pro rata in cash payments to the Zimmer Biomet shareholders who otherwise would have received fractional shares of ZimVie common stock.
Zimmer Biomet previously announced that the deal includes ZB receiving a $501 million cash payment from ZimVie, which means that the new company will have roughly $500 million in debt.
