Zimmer Biomet Completes Acquisition of A&E Medical Corporation

Rhea-AI Summary

On December 1, 2020, ZBH announced the completion of its acquisition of A&E Medical Corporation for $150 million in cash at closing and $100 million payable in 2021. This acquisition enhances Zimmer Biomet's portfolio with sternal closure devices, including sutures and rigid fixation systems. The deal is expected to have an immaterial impact on net earnings for 2020. The global sternal closure market is growing at a high single-digit percentage rate annually, indicating potential for expanded revenue through this integration.

Positive

• Acquisition of A&E Medical enhances Zimmer Biomet's product offerings in sternal closure devices.
• Expected synergies from integrating A&E's high-growth business.
• Access to new markets with a growing single-digit percentage rate for sternal closure solutions.

Negative

• None.

WARSAW, Ind., Dec. 1, 2020 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global leader in musculoskeletal healthcare, today announced that the company has completed the acquisition of A&E Medical Corporation, a Vance Street Capital Portfolio Company, for $150 million in cash at closing and $100 million in cash payable in 2021.  The deal is expected to have an immaterial impact to net earnings in 2020.

Zimmer Biomet has acquired A&E Medical and its complete portfolio of sternal closure devices – including sternal sutures, cable systems, and rigid fixation – along with a range of single-use complementary temporary pacing wire and surgical punch products.

"A&E Medical's high-growth business and innovative products are highly complementary to our current portfolio and will allow us to offer a comprehensive suite of sternal closure products, including rigid fixation, which has the potential to shift the standard of care and address a variety of unmet patient and surgical needs," said Bryan Hanson, President and CEO of Zimmer Biomet. "This deal aligns with our active portfolio management strategy and the ongoing transformation of our business that will position Zimmer Biomet for long-term growth."

The global sternal closure business is growing at a high single digit percentage rate annually.  Revenue from the new integrated business will be recognized in Zimmer Biomet's Dental, Spine & Craniomaxillofacial and Thoracic (CMFT) product category. 

"We believe the addition of A&E's leading comprehensive sternal closure products to the portfolio of Zimmer Biomet, a long-standing leader in surgical solutions, will benefit surgeons, patients and health care systems," said Thomas J. Sullivan, President & Chief Executive Officer of A&E Medical Corporation.

About Zimmer Biomet

Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer Biomet is a global leader in musculoskeletal healthcare. We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; office-based technologies; spine, craniomaxillofacial and thoracic products; dental implants; and related surgical products.

We collaborate with healthcare professionals around the globe to advance the pace of innovation. Our products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Together with healthcare professionals, we help millions of people live better lives.

We have operations in more than 25 countries around the world and sell products in more than 100 countries. For more information, visit www.zimmerbiomet.com, or follow Zimmer Biomet on Twitter at www.twitter.com/zimmerbiomet.

About A&E Medical Corporation

Founded in 1968 and headquartered in Farmingdale, New Jersey, A&E Medical is a leading designer and manufacturer of a comprehensive portfolio sternal closure devices including A&E DoubleWire™, the A&E Medical® Sternal Cable System, and the Thorecon® and Tritium® rigid fixation systems; along with a wide variety of temporary cardiac pacing wires including the MYO/Wire® Ultra-Thin and MYO/Wire® Ultra-Flex brands, disposable patient cables, and A&E Medical® Surgical Punch.  A&E Medical was acquired by Vance Street Capital in 2016.

About Vance Street Capital LLC

Vance Street Capital is a middle-market private equity firm focused on investing in highly engineered solutions businesses across the medical, aerospace, defense and industrial sectors. For more than two decades, Vance Street's partners have worked with management teams and family owners to accelerate revenue growth, improve operations and acquire strategic assets for the companies in their investment portfolio. For more information, visit www.vancestreetcapital.com.           

Media	Investors
Meredith Weissman	Keri Mattox
703-346-3127	215-275-2431
meredith.weissman@zimmerbiomet.com	keri.mattox@zimmerbiomet.com
	Ezgi Yagci
	617-549-2443
	ezgi.yagci@zimmerbiomet.com

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/zimmer-biomet-completes-acquisition-of-ae-medical-corporation-301182046.html

SOURCE Zimmer Biomet Holdings, Inc.

FAQ

What is the value of the acquisition of A&E Medical by ZBH?

The acquisition is valued at $150 million in cash at closing and $100 million payable in 2021.

What products does A&E Medical add to ZBH's portfolio?

A&E Medical adds sternal closure devices, including sutures, cable systems, and rigid fixation products.

How will the acquisition impact ZBH's earnings?

The deal is expected to have an immaterial impact on net earnings in 2020.

What is the growth rate of the global sternal closure market?

The global sternal closure business is growing at a high single-digit percentage rate annually.