ZimVie to Shed Spinal Business to Focus on Dental

What happens once a spinout spins a company out?

That question is being answered by ZimVie – as the company, which was spun off from of ZimmerBiomet in 2021, is selling its spine business to HIG Capital for $375 million.

The new deal sets ZimVie up as a pure play dental company and is expected to close in the first half of 2024.

Under the terms of the agreement, upon the closing of the transaction, ZimVie will receive $375 million in total consideration, comprised of $315 million in cash, and $60 million in the form of a promissory note that will accrue interest at a rate of 10% per annum, compounded semi-annually, payable in kind. 

“Our spine business possesses an innovative portfolio, and is well positioned to continue to improve under this new ownership,” said Vafa Jamali, President and CEO, in a release. “Similarly, this transaction provides the capital to fund go-forward growth for dental’s commercial and innovation platforms while reducing ZimVie’s leverage profile. This transaction is intended to create a leaner, more focused ZimVie with a leading position in attractive and growing global dental markets.”

This is the second high-profile medtech spinoff this month. A little more than a week ago, Edwards Lifesciences said that it was shedding its critical care business in 2024.

Related:Life After Zimmer Biomet: Why ZimVie Has The "It" Factor

The Irvine, CA-based company said the critical care business is focused on integrating a full range of Smart monitoring technologies onto the seventh generation of its HemoSphere platform creating a unique offering of enhanced recovery tools.