ZimVie
(Nasdaq: ZIMV)
announced today that it completed the sale of its spine business to establish itself as a pure-play dental company.
The company also shared details on the makeup of the leadership team at the now-sold business unit.
Westminster, Colorado-based ZimVie announced its intent to sell the spine business to H.I.G. Capital in December 2023. The deal features $375 million in total consideration, with $315 million in cash upfront and a $60 million promissory note. According to a news release, the promissory note accrues interest at a rate of 10% per annum.
ZimVie’s spine business sale comes just over two years after the company spun out of Zimmer Biomet as a combination of its spine and dental units.
With the sale of the unit completed, ZimVie offered its outlook for one year following the close. It projects an annualized financial profile of more than $455 million in net sales and a greater than 15% adjusted EBITDA margin. The company intends to pay down $275 million in oustanding debt, leaving $234 million in debt remaining. It estimates cash at approximately $66 million as of April 2, 2024.
“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, ZimVie president and CEO. “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.”
Leadership structure at ZimVie Spine
ZimVie said last year that H.I.G. Capital intends to support the existing management of the spine organization. As of December, ZimVie Global Spine President Rebecca Whitney will continue as the president of spine in the new company, reporting to a CEO to be named later.
Now, the company has its executive team in place. Whitney remains president of spine, reporting to new CEO Glen A. Kashuba. Kashuba has more than 30 years of experience in medical devices, including as CEO of Cerapedics. He served as a divisional president in various markets at Johnson & Johnson and Zimmer Biomet as well.
Eric Major is now executive chair of the businesses board of directors. He founded K2M and led it through its $1.4 billion acquisition by Stryker in 2018. After that, Major served as president of Stryker Spine.
Chris O’Connell also joins as a board member, having spent time across the medical devices, life sciences and global healthcare fields. He spent time as an EVP and group president at medtech giant Medtronic.
