4 Early Observations about a combined Wright-Tornier

#1 – The big picture of the deal 

• Both boards have approved the merger and closing is expected in 2H 2015.
• New company will be based in Holland under the corporate name Wright Medical Group NV.
• This is a 100% stock transaction (no cash) with a combined equity value of ~$3.3B
• Wright shareholders will own 52%, and Tornier shareholders will own 48%
• At closing, Wright shareholders will receive 1.0309 Tornier common shares for each share of Wright stock they own, representing an approximate value of $24.79 per share
• Tornier shareholders will get a 28% premium based on Tornier’s closing share price
  on October 24.
• Law firms are trying to stir up a lawsuit that Wright has not fulfilled its fiduciary duty to shareholders by merging with Tornier

#2 – Overview of Wright 

• Wright is strongest in Foot & Ankle and Biologics
• Wright 2013 revenue is $242M
• Wright has 1,000 employees
• Wright Market Cap is ~$1.58B
• Wright has operations in Memphis, TN
• NASDAQ: WMGI

#3 – Overview of Tornier

• Tornier is strongest in Shoulder and Upper Extremity
• Tornier 2013 revenue is $311M
• Tornier has 1,076 employees
• Tornier Market Cap is ~$1.35B
• Tornier has operations in Minneapolis MN, Warsaw IN, Akron OH, Ireland, France
• NASDAQ: TRNX

#4 – A combined Wright-Tornier

• The Synergy between upper extremities, lower extremities and biologics is good.
• Look for Wright to lead Lower Extremities and Biologics
• Look for Tornier to lead Upper Extremities
• Look for people who specialize in upper extremity product lines to be relocated to MN and people who specialize in lower extremity product lines to be relocated to TN
• Look for 2015 revenues in the $500M range