Zimmer Biomet (NYSE: ZBH) announced today that it has filed a Form 10 registration statement with the SEC as it moves forward with the spinoff of its spine and dental businesses.
The new 2,600-employee company will be called ZimVie, with headquarters in Westminster, Colorado. There is no exact date of when the deal will close in the first quarter of 2022, but ZimVie is hosting a virtual investors day on February 7.
ZimVie has filed to have its shares traded on the Nasdaq under the symbol ZIMV.
As part of the deal, ZB will receive a $501 million cash payment from ZimVie, which means that the new company will have $561 million in debt.
Zimmer Biomet’s spine and dental business have seen the COVID-19 pandemic negatively affect procedure volumes and cause supply chain disruptions. The business saw a net loss of nearly $35 million off $753 million in sales for the nine months ended September 30, 2021, an improvement from the loss of nearly $216 million off nearly $638 million in sales for the same period a year before.
Company officials said in an information statement attached to the Form 10: “The separation will allow ZimVie flexibility to pursue multiple avenues to accelerate growth and operating margins, as well as allow us to access untapped revenue potential from growing, underpenetrated global markets. We believe that our broad commercial footprint supported by a global infrastructure will support this growth. The separation will position ZimVie to commercialize key new product launches and existing product offerings with a focused execution strategy for each geographic region in which we operate.”