The Austin American-Statesman reported on January 10 that Zimmer Spine is closing its Austin, Texas facility.
Zimmer Holdings, Inc. acquired Austin-based Abbott Spine in 2008 for $360 million. About 100 people are currently employed at the facility. An undisclosed number of workers from Austin will be given the opportunity to relocate to the Twin Cities in Minnesota, where Zimmer Spine is headquartered. Zimmer owns a 51, 000-square-foot building in Minnesota, which it acquired when it bought out the Swiss company that had previously acquired Spine-Tech, Inc. in 2003.
The consolidation is expected to be completed by this coming July. The company issued a statement that said the changes were being made to “streamline its business, ” by consolidating operations in Minneapolis and Memphis, Tennessee.
Zimmer Spine has been losing market share over the last couple of years, including reporting a 10% decline in sales for the third quarter of 2012. Sales declined each quarter this past year.
When Zimmer acquired Abbott Spine in 2008, Zimmer President and CEO David Dvorak said, “This acquisition is another significant step in executing our strategies to position Zimmer for sustained growth in the future. We are excited to be adding a number of innovative products that round out the Zimmer Spine portfolio and help us build toward critical mass in this important business segment. In addition to bringing great products and a promising pipeline, the Abbott Spine acquisition will add to our research and development capabilities in the spinal category and will strengthen our sales coverage.”
Among the key products acquired in the deal were the InCompass Pedicle Screw System; the Pathfinder Minimally Invasive Pedicle Screw system; the Wallis Interspinous Stabilizer System (available outside the U.S.); the Ant-Cer Dynamic Cervical Plate; and the Universal Clamp.
