Zimmer Biomet Holdings will spin off its spine and dental businesses to form a new and independent publicly traded company known as NewCo. The planned transaction will enhance the focus of both Zimmer Biomet and NewCo to meet the needs of patients and customers and is expected to achieve faster growth and deliver greater value for all stakeholders, according to Zimmer Biomet.
“As part of the third phase of ZB’s ongoing transformation, we are changing the complexion of our business through active portfolio management in order to accelerate growth and drive value creation,” said Bryan Hanson, president and CEO of Zimmer Biomet.
“We believe NewCo will thrive as an independent company with prioritized capital allocation to pursue strategic growth opportunities and investment strategies in the large and growing spine and dental markets,” Hanson said.
“This planned transaction underscores our commitment to ensuring our long-term priorities remain aligned with shareholders’ best interests as we drive the business forward to meet customer needs and advance our mission to alleviate pain and improve the quality of life for people around the world,” Hanson said.
Zimmer Biomet expects the planned tax-efficient spinoff of NewCo to create value for all stakeholders by creating a stronger growth profile for each company with enhanced management focus while better aligning resources and processes more directly with the strategic priorities of each business.
Also, the company expects the spinoff to improve capital allocation based on the objectives of each independent company, reduce complexity and improve operating efficiencies, and provide each company with a compelling financial profile that more accurately reflects the strengths and opportunities of each business.
According to Zimmer Biomet, the dental business is a global leader in oral reconstruction and is well positioned in the surgical, restorative and digital, and regenerative segments of the dental market. Products include the T3 Implant, Tapered Screw-Vent Implant System, Trabecular Metal Dental Implant, BellaTek Encode Impression System, and Puros Allograft Particulate.
Hanson will continue to lead Zimmer Biomet as its president and CEO. The search for a NewCo CEO is in its final stages. The NewCo board of directors, management, and headquarters will be announced as they are finalized. Zimmer Biomet expects to complete the spinoff by mid-2022.