ZimVie Closes Sale of Spine Business – Re-Named Highridge Medical

The sale is for a total of $375 million. Under the terms of the agreement, H.I.G is paying $315 million in cash “subject to certain customary adjustments as set forth in the agreement” and a $60 million promissory note. The promissory note “will accrue interest at a rate of 10% per annum, compounded semi-annually, payable in kind, subject to a maturity no later than five and a half years” from the date of closing.

Headquartered in Miami, Florida, H.I.G. Capital is a global alternative investment firm. It has $60 billion of capital under management. The acquired spine business will operate as an independent entity under the name of Highridge Medical.

ZimVie is a global life sciences company based in Westminster, Colorado. After the sale, its sole focus will be on the dental industry. This includes the development, manufacturing, and delivery of, according to the company, “comprehensive portfolio of products and solutions designed to support dental tooth replacement and restoration procedures.”

ZimVie President and Chief Executive Officer Vafa Jamali commented, “The completion of the sale of our Spine business is the culmination of months of partnership with H.I.G. Capital and years of commitment from our global Spine team members; I would like to thank everyone for their immense contributions.”

Jamali continued, “I could not be more excited for the future of our company as we continue to invest in differentiated solutions for Dental patients and providers in our most attractive end markets, while optimizing our structure to deliver value for our shareholders.”

According to the press release, ZimVie plans to “immediately pay down $275 million of outstanding debt.” This leaves “total debt of approximately $234 million, and estimated cash of approximately $66 million.” Additionally, ZimVie expects to accomplish an “annualized financial profile of $455+ million in Net Sales, and a 15%+ adjusted EBITDA margin(1) one year following the close of the deal.”

Highridge Medical

Highridge Medical’s senior leadership are among the most experienced, successful, and active spine industry executives. Executive board chairman is Eric Major, co-founder and CEO of K2M, which Stryker purchased in 2018 for $1.4 billion. Chief Executive Officer is Glenn Kashuba, whose 30+ year career in orthopedics and spine included, most recently, the CEO position at Cerapedics where he led that company to become the second largest supplier of bone graft products, behind Medtronic, in spine.

Highridge Medical generated about $400 million in sales and approximately $30 million in operating profit in 2023. Under this management, we would expect the company to quickly establish its identity and set out a plan to invest in innovation and differentiation leading ultimately to accelerated sales and market share in the spine and neurosurgery market.