Zimmer Biomet Holdings, Inc., a global leader in medical technology, has announced that it plans to acquire Embody, Inc., a privately-held medical device company specializing in soft tissue healing, for $155 million. Zimmer Biomet acquires Embody as part of its strategic focus on high-growth markets and commitment to introducing significant new advances to patients and surgeons. The purchase includes Embody’s entire portfolio of collagen-based biointegrative solutions, including the TAPESTRY® biointegrative implant for tendon healing and TAPESTRY® RC, one of the first arthroscopic implant systems for rotator cuff repair. The deal, expected to close in February 2023, is predicted to increase overall revenue growth while slightly diluting adjusted earnings per share for the year.
Acquisition Announcement
Deal Strengthens Zimmer Biomet’s Growing Sports Medicine Portfolio and Supports Continued Company Transformation
Details of the Acquisition
WARSAW, Ind., Jan. 5, 2023 — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that it has reached a definitive agreement to acquire Embody, Inc., a privately-held medical device company focused on soft tissue healing, for $155 million at closing and up to an additional $120 million subject to achieving future regulatory and commercial milestones over a three year period. The acquisition is expected to be accretive to overall revenue growth and slightly dilutive to adjusted earnings per share in 2023.
Product Portfolio
The acquisition includes Embody’s complete portfolio of collagen-based biointegrative solutions to support healing in the most challenging orthopedic soft tissue injuries – including the TAPESTRY® biointegrative implant for tendon healing and TAPESTRY® RC, one of the first arthroscopic implant systems for rotator cuff repair.
Statements from Executives
“Embody’s differentiated products and innovative pipeline in the area of sports medicine support our continued focus on and investment in high-growth markets and underscores our commitment to bringing meaningful new advances to patients and surgeons,” said Bryan Hanson, Chairman, President and CEO of Zimmer Biomet. “The planned acquisition of Embody is an important step in the ongoing transformation of ZB and the execution of our strategic priority to increase long-term growth and drive value creation.”
“We are excited for the potential to create value for patients and customers in new ways and believe the combination of Embody’s innovative products and Zimmer Biomet’s established portfolio will bring new solutions to the market that could redefine the standard of care,” said Jeff Conroy, Chief Executive Officer of Embody.
Completion and Financial Details
The transaction is subject to customary closing conditions and is expected to be completed in February 2023. Guggenheim Securities is acting as financial advisor to Embody.
About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.
About Embody
Embody, the soft tissue healing company, is pioneering the next-generation regenerative platform with novel collagen-based bio-fabrication techniques and products for the fast-growing sports medicine market.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995…
Contact Information
Media Contact: Meredith Weissman, (703) 346-3127, meredith.weissman@zimmerbiomet.com
Investor Contact: Keri Mattox, (215) 275-2431, keri.mattox@zimmerbiomet.com
Heather Zoumas-Lubeski, (445) 248-0577, Heather.ZoumasLubeski@zimmerbiomet.com
SOURCE Zimmer Biomet Holdings, Inc.
Question & Answer
Q: What is the acquisition announcement made by Zimmer Biomet Holdings, Inc.?
A: Zimmer Biomet Holdings, Inc. has announced its plans to acquire Embody, Inc., a medical device company specializing in soft tissue healing, for $155 million.
Q: What products are included in Embody’s portfolio that Zimmer Biomet will acquire?
A: The acquisition includes Embody’s TAPESTRY® biointegrative implant for tendon healing and TAPESTRY® RC, one of the first arthroscopic implant systems for rotator cuff repair.
Q: When is the expected completion date for the acquisition of Embody by Zimmer Biomet?
A: The transaction is expected to be completed in February 2023, subject to customary closing conditions.
