Zimmer Biomet Buys LDR to Expand Spine Portfolio

Zimmer Biomet (Warsaw, IN, USA), a global leader in musculoskeletal healthcare, has signed a definitive agreement to acquire all of the outstanding shares of LDR (Austin, TX, USA), at a transaction value of approximately USD one billion.

The addition of LDR will bolster Zimmer Biomet's presence in the global spine market and provide the company with an immediate and a leading position in the fast growing cervical disc replacement (CDR) and minimally invasive surgery (MIS) segments. Spine is one of Zimmer Biomet's smaller and poorer performing businesses, and the company expects that the LDR purchase will catapult it to a top spot in the USD 10 billion spine market through incremental revenues associated with entry into the CDR market, and cross-portfolio selling opportunities to both Zimmer Biomet and LDR customer bases.

Zimmer also expects to be able to leverage the acquisition in order to expand its existing hip and knee position into United States as well as other major international spine markets. It also expects that the addition of a spine portfolio will put it in a better position to compete for large hospital vendor contracts, which are becoming increasingly common as hospitals look to consolidate costs.

“This highly strategic and complementary transaction will enhance Zimmer Biomet's innovation leadership in musculoskeletal healthcare by adding a premier spine platform to our portfolio of solutions,” said David Dvorak, President and CEO of Zimmer Biomet. “This combination is consistent with our goal of driving meaningful growth across all musculoskeletal markets with innovative products, technologies and services that enhance patient outcomes.”

“We are delighted with this combination, which will further our commitment to improving spine care by providing greater access to our innovative product offerings for patients around the world, while offering our stockholders immediate cash value,” said Christophe Lavigne, co-founder, chairman, president, and CEO of LDR. “We have great respect for the Zimmer Biomet team, who shares our passion for innovation as well as our commitment to patients and providers. We look forward to working closely with Zimmer Biomet to achieve a seamless transition and create lasting value for all of our stakeholders.”

Founded in France in 2000, LDR designs and commercializes Mobi-C CDR, the first U.S. Food and Drug Administration (FDA)-approved device to treat both one- and two-level adjacent damaged cervical discs. In clinical testing, Mobi-C has demonstrated superiority to spinal fusion, an increasingly controversial technique, for two-level procedures. LDR also holds the MIVo product portfolio to support lumbar and cervical fusion procedures.

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