ZimVie Spinoff Notes

January 20, 2023 Update

VIC ZIMV Write-up (must set up free account required to access)

– ZIMV is definitely cheap. The problem is it’s spine business is a drag on the company.

– This would be a good company for an activist. The strategy would be to sell/wind down the spine business. That would leave the dental business ($420MM of annual sales). ZIMV’s total EV now is $690MM so the dental business is trading at an EV/revenue multiple of 1.6x. Dental companies trade from 1.8x to 8x revenue.