Zimmer is a world-class total joint company that has tried to diversify into spine over and over again... and failed. Hindsight says that they should have focused on joints.
Let's look at the history of missteps with spine.
2003 -Zimmer acquires the old SpineTech business (MN) through the Centerpulse acqusition.
2008 - Zimmer acquires the Spinal Concepts business from Abbott Spine.
2014 - Zimmer acquires Lanx as part of the Biomet merger
2016 - Zimmer acquires LDR Spine
2022- Zimmer spins out Spine business and Dental business as new public company - ZimVie. Never profitable. Stock tanks.
2023 - ZimVie sells spine business once and for all.
Three thoughts:
1/ $1,757M in investments turns into $375M sale.
Adding up the costs of Zimmer spine acquisitions:
Spinal Concepts: $360 million
Lanx: $147 million
LDR: $1.0 billion
A&E Medical Corporation: $250 millionTotal Acquisition Costs: $1,757 million
2/ Market cap of ZimVie is $450M and they sell spine for $375M, so the remaining dental business may be worth only $75M after the sale. The $375M proceeds from the sale will be used to pay down some of the ZimVie debt.
3/ Rumors are that HIG Capital will be rolling up some sp...
