Zimmer's LDR Deal Could Force Others to Grow a Dealmaking Spine (The Street)
The $1 billion transaction could inspire other medical device companies and private equity firms to bend over backwards for spinal device assets.
Globus Medical (GMED) , K2M Group Holdings (KTWO) , NuVasive (NUVA) , Orthofix International (TK) , Xtant Medical Holdings (XTNT) and Alphatec (ATEC) are among spine companies that investors should keep tabs as prospective targets or buyers following Zimmer Biomet Holdings' (ZBH) recent $1 billion deal for LDR Holding (LDRH) , according to health care industry sources.
The Zimmer-LDR transaction, announced earlier this month, reaffirms that there continues to be an appetite for innovation in the spinal devices market despite risks the space has seen over the past several years, including regulatory challenges when it comes to the approval of new devices, high procedural costs and pricing pressures.
"It means there's clear interest in the space," one source said, requesting anonymity. "Some of the guys similar to LDR from a size and scale perspective become almost easier acquisition targets."
Kohlberg & Co.'s recent play in the sector may also be indicative of...
