Zimmer Biomet (NYSE:ZBH) today announced it entered a definitive agreement to acquire soft tissue healing developer Embody for up to $275 million.
Through the deal, Zimmer Biomet will pay $155 million at closing. It could also provide up to an additional $120 million upon Embody achieving future milestones over a three-year period. ZB expects the acquisition to be accretive to overall revenue growth. It will also be slightly dilutive to adjusted earnings per share in 2023.
“Embody’s differentiated products and innovative pipeline in the area of sports medicine support our continued focus on and investment in high-growth markets and underscores our commitment to bringing meaningful new advances to patients and surgeons,” Zimmer Biomet President and CEO Bryan Hanson said in a news release. “The planned acquisition of Embody is an important step in the ongoing transformation of ZB and the execution of our strategic priority to increase long-term growth and drive value creation.”
The acquisition includes Embody’s complete portfolio of collagen-based biointegrative solutions that support healing in the most challenging orthopedic soft tissue injuries, including the Tapestry biointegrative implant for tendon healing and Tapestry RC arthroscopic implant systems for rotator cuff repair.
“We are excited for the potential to create value for patients and customers in new ways and believe the combination of Embody’s innovative products and Zimmer Biomet’s established portfolio will bring new solutions to the market that could redefine the standard of care,” Embody CEO Jeff Conroy said.
ZB expects to complete the transaction in February 2023.
