This morning, Zimmer Biomet announced its intention to spin-off its spine and dental businesses into a new public company. The new company would have revenues of approximately $890 million of which spine would account for 60%. The transaction is expected to be completed roughly 16 months from now, mid-2022.
Wall Street initially is taking the announcement well. Larry Biegelsen at Wells Fargo noted in his morning comment to investors that the news did not come as a surprise to him since the company had been de-emphasizing the two businesses in recent commentary.
Last year, which was extremely difficult for all implant suppliers, sales of spine and dental had declined about 12%.
There will be much more information over the next few weeks so stay tuned.
