(RTTNews) - Musculoskeletal healthcare firm Zimmer Biomet Holdings Inc. (ZBH) announced Friday its intention to spin off its Spine and Dental businesses into a new and independent, publicly traded company.
The planned transaction will enhance the focus of both Zimmer Biomet and spun-off company to meet the needs of patients and customers and is expected to accelerate growth and drive value creation.
It will also enable Zimmer Biomet to sharpen its focus on high growth, high priority areas within the orthopedics market, including Knees, Hips, Sports Medicine, Extremities and Trauma (S.E.T.), and Craniomaxillofacial and Thoracic (CMFT).
Zimmer Biomet expects the spin-off to result in an improved financial profile. The transaction is expected to be accretive to revenue growth, adjusted EBITDA, operating margins and adjusted earnings per share growth.
The spun-off company will be well-positioned in the $21 billion combined global Spine and Dental markets that benefit from attractive fundamentals.
Bryan Hanson will continue to lead Zimmer Biomet as its President and CEO. The search for a CEO for the spun-off company is in its final stages. The spun-off company's Board of Directors, management and headquarters will be announced as they are finalized.
The transaction is intended to qualify as a tax-free distribution, for U.S. federal income tax purposes, to U.S. shareholders of new publicly traded stock in the spun-off company.
Zimmer Biomet is targeting completion of the spin-off in mid-2022, subject to the satisfaction of certain conditions including, among others, final approval of Zimmer Biomet's Board of Directors.
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