ZimVie Announces Closing Of Sale Of Spine Business To An Affiliate Of H.I.G. Capital For $375M In Total Consideration
Portfolio Pulse from Benzinga Newsdesk
ZimVie Inc. (NASDAQ:ZIMV) has completed the sale of its Spine business to an affiliate of H.I.G. Capital for $375 million, including $315 million in cash and a $60 million promissory note. The sale is part of ZimVie's strategy to focus on the dental market and optimize its structure for shareholder value. Post-sale, ZimVie plans to pay down $275 million of its debt, aiming for a financial profile of $455+ million in Net Sales and a 15%+ adjusted EBITDA margin one year post-closure.
April 01, 2024 | 1:36 pm
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ZimVie Inc. completes sale of its Spine business for $375M, aiming to focus on the dental market and improve financial health by reducing debt.
The sale of the Spine business allows ZimVie to concentrate on its core dental market, potentially leading to a more focused and efficient operation. The significant cash inflow from the sale and the subsequent debt reduction could improve the company's financial stability and attractiveness to investors. The positive outlook provided by the company, including expected Net Sales and EBITDA margin improvements, suggests a bullish short-term impact on ZIMV's stock price.
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