Zimvie Inc. (NASDAQ: ZIMV) has successfully completed the sale of its spine business to an affiliate of H.I.G. Capital for a total consideration of $375 million. This amount includes $315 million in cash and a $60 million promissory note. The company's President and CEO, Vafa Jamali, expressed gratitude to the global spine team members for their contributions and emphasized the company's commitment to investing in differentiated solutions for dental patients and providers in its most attractive end markets.
Following the sale, Zimvie expects to achieve an annualized financial profile of $455+ million in net sales and a 15%+ adjusted EBITDA margin within one year. The company plans to use the proceeds to immediately pay down $275 million of outstanding debt, leaving total debt of approximately $234 million and estimated cash of approximately $66 million as of April 2, 2024.
Zimvie, a global life sciences leader in the dental market, develops, manufactures, and delivers a comprehensive portfolio of products and solutions designed to support dental tooth replacement and restoration procedures. The company is headquartered in Palm Beach Gardens, Florida, with additional facilities around the globe.
Following these announcements, the company's shares moved 9.1%, and are now trading at a price of $18.0. For more information, read the company's full 8-K submission here.
