Zimmer-Biomet acquires Cayenne Medical
Multiple is 7.5 X sales – Word on the street says that Zimmer will pay $150M in total earnouts (3 payments) on $20M sales @ Cayenne in the last year.
WARSAW, Ind., April 25, 2016 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global leader in musculoskeletal healthcare, announced today that it has entered into a definitive agreement to acquire Scottsdale, Arizona-based Cayenne Medical, Inc. The transaction, which is subject to customary closing conditions, is expected to close during the second quarter of 2016. The financial terms of the transaction were not disclosed.
The acquisition of Cayenne Medical will strengthen Zimmer Biomet’s Sports Medicine capabilities and portfolio of technically advanced soft tissue reconstruction solutions for knee, shoulder and extremities procedures.
“As a market leader in musculoskeletal healthcare, the expansion of our Sports Medicine business with Cayenne Medical’s highly successful portfolio represents an exciting growth opportunity and will meaningfully advance our commitment to serving the needs of patients across the full continuum of care,” said David Nolan, Group President of Zimmer Biomet’s Sports Medicine, Extremities, Trauma, Biologics and Surgical businesses. “With rising demand for the clinical benefits of advanced soft tissue repair and reconstruction solutions, we greatly look forward to leveraging Zimmer Biomet’s scale and specialized sales capabilities to broaden and accelerate the growth of Cayenne Medical’s clinically acclaimed offerings.”
“Cayenne Medical is extremely pleased to join forces with Zimmer Biomet to drive the future growth and ongoing development of our innovative sports medicine technologies,” said David B. Springer, President and Chief Executive Officer of Cayenne Medical. “From the beginning, Cayenne Medical has endeavored to be a leader in the soft tissue repair and reconstruction segment of sports medicine, and this combination with Zimmer Biomet will advance our mission to solve unmet needs in this clinical area, while transforming traditional techniques with minimally invasive innovations and generating compelling cost savings in the delivery of care by surgeons, surgery centers and hospitals.”
Faegre Baker Daniels LLP is serving as legal counsel to Zimmer Biomet. Piper Jaffray is serving as exclusive financial advisor to Cayenne Medical and Snell & Wilmer is serving as its legal counsel.
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 orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, 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 Cayenne Medical
Cayenne Medical designs, develops and markets technically advanced soft tissue reconstruction solutions for the knee, shoulder and extremities. Founded in 2005, the company has led the transformation of traditional arthroscopic procedures by applying innovative technology through minimally invasive techniques.
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SOURCE Zimmer Biomet Holdings, Inc.