Zimmer Biomet Announces Intent to Spin Off Spine and Dental Businesses (press release)
Tiger's quick takeaways:
#1 NEGATIVE - Spine and Dental businesses are not complementary. Makes no sense to me to combine them, other than ZBH wants to jettison the dogs to concentrate on higher growth and profit businesses. Spine and Dental have different customers making buying decisions, different sales/distribution, and different products and margins.
#2 POSITIVE - This spin-off will make Zimmer's core businesses, hip, knee, SET (Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma) much stronger. This is not financial advice (just informational content), but look for ZBH earnings to accelerate after the spin-off. [ current ZBH stock price ]
#3 STRATEGIC - Many industry insiders believe that ZB's spin-off will position them better for a future acquisition by MDT.
#4 TIMING - The proposed spinoff doesn't happen until mid-2022, so things could change.
#5 THE PRESS RELEASE -
Zimmer Biomet (Formerly Known As Biomet Inc.) Holdings, Inc. (NYSE and SIX: ZBH), a global leader in musculoskeletal healthcare, today announced its intention to spin off the Company's Spine and Dental...
