Zimmer Biomet Spin-off (Spine and Dental) Notes
March 18, 2022 Update
Good interview with Vafa Jamali CEO of ZimVie
- ZimVie is projecting approximately $1b in revenue for 2022
- The company is burdened with $561m in debt at the time of spin
February 15, 2022 Update
Good write up on the ZimVie spinoff
- RemainCo will have a full divestment of ZimVie with 80.3% going to shareholders and 19.7% being IPOed
February 3, 2022 Update
Good overview on the ZimVie spin
- The Dental and Spine (SpinCo) branches of Zimmer Biomet does not have as strong margin and growth profile as the RemainCo
- ZimVie’s EBITDA fell from $153m in 2018 to $89m in 2020
- During the same period, ZimVie’s margins fell from ~15% to 10%
- There has been some rebound TTM EBITDA of $144m with 14% margin
- The Dental and Spine market TAM combined are worth $21b which ZimVie will account for <5%
- The SpinCo will be burdened with ~$555m in gross debt for almost 3.5x net leverage
- This seems like a possible opportunity for indiscriminate selling depending on whether investors identify the SpinCo as a different industry and many investors may sell simply because of the smaller size
January 27, 2022 Update
Good key points on understanding the Zimmer Biomet spin, ZimVie
- Recently Zimmer Biomet filed its initial Form 10 with the SEC
February 19, 2021 Update
- Zimmer announced that it will spin off, ZimVie, its Spine and Dental businesses into an independent public company.
- The tax free spin-off is supposed to be completed by mid 2022.
- Spin-off Presentation.
- Remainco:
- Will have ~$6.1BN in revenue.
- Market leader in knees and hips.
- Spin-off
- $900MM in 2020 revenue.
- Focused on Spine (#6 in the market) and Dental (#5 in the market)
- Spine and Dental were paired together because they use similar materials.
- Could be an interesting situation given size differential of spin-off vs. parent (could see indiscriminate selling).
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