Zimmer Holdings To Acquire Implex Corp.
July 28, 2016 at 4:25 p.m.
Zimmer Holdings Inc. and Implex Corp., a privately held New Jersey company, announced Monday that Zimmer has agreed to acquire Implex common stock and cash escrow.
Under the agreement, Implex will become a wholly owned subsidiary of Zimmer.
Each share of Implex stock will be converted into the right to receive Zimmer common stock and cash. The value of the sale was approximately $108 million at closing with additional value in the form of Zimmer common stock payments contingent on growth of Implex product sales through 2006.
In 2000, Zimmer entered into an exclusive, worldwide strategic alliance for commercialization of Implex's innovative Hedrocel¨ biomaterial, which Zimmer has marketed as Trabecular Metalª Technology.
"We call Trabecular Metal 'the best thing next to bone' because we believe it is the most exciting new porous material platform the orthopedics industry has seen in decades," said Ray Elliott, Zimmer chairman, president and CEO. "We look forward to applying our extensive development resources to the application of the technology in new areas. We intend to expand the existing Implex line of spinal products that incorporate Trabecular Metal Technology, which have already been implanted in Europe and the United States, into our new Zimmer Spine division. We believe Trabecular Metal has the potential to give us opportunities in the fusion and non-fusion spinal categories that other competitors cannot match."
Zimmer currently markets hip, knee and shoulder replacement implants and trauma products using the technology. The company recently announced it has seven development projects underway using the material and it expects Trabecular Metal product sales to grow substantially. Made of the highly biocompatible element Tantalum, Trabecular Metal is very similar to natural bone in its porosity, friction, structural strength and bending characteristics, making it an ideal choice for orthopedic implants. Because it is a free-standing structure rather than a surface coating, it allows for the development of completely porous devices.
"This was the anticipated outcome of our Zimmer alliance relationship and is the next exciting step for Implex in applying our technology to the needs of orthopedic patients," said Alex Khowaylo, Implex president and CEO. "All of us at Implex look forward to playing an expanding role in strengthening Zimmer's joint reconstruction leadership and in expanding the company's spinal franchise."
The acquisition is expected to close in the first quarter of 2004.
Zimmer stock closed Monday on the New York Stock Exchange at $65.35, up 2.9 percent on volume of 731,000 shares.
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Zimmer Holdings Inc. and Implex Corp., a privately held New Jersey company, announced Monday that Zimmer has agreed to acquire Implex common stock and cash escrow.
Under the agreement, Implex will become a wholly owned subsidiary of Zimmer.
Each share of Implex stock will be converted into the right to receive Zimmer common stock and cash. The value of the sale was approximately $108 million at closing with additional value in the form of Zimmer common stock payments contingent on growth of Implex product sales through 2006.
In 2000, Zimmer entered into an exclusive, worldwide strategic alliance for commercialization of Implex's innovative Hedrocel¨ biomaterial, which Zimmer has marketed as Trabecular Metalª Technology.
"We call Trabecular Metal 'the best thing next to bone' because we believe it is the most exciting new porous material platform the orthopedics industry has seen in decades," said Ray Elliott, Zimmer chairman, president and CEO. "We look forward to applying our extensive development resources to the application of the technology in new areas. We intend to expand the existing Implex line of spinal products that incorporate Trabecular Metal Technology, which have already been implanted in Europe and the United States, into our new Zimmer Spine division. We believe Trabecular Metal has the potential to give us opportunities in the fusion and non-fusion spinal categories that other competitors cannot match."
Zimmer currently markets hip, knee and shoulder replacement implants and trauma products using the technology. The company recently announced it has seven development projects underway using the material and it expects Trabecular Metal product sales to grow substantially. Made of the highly biocompatible element Tantalum, Trabecular Metal is very similar to natural bone in its porosity, friction, structural strength and bending characteristics, making it an ideal choice for orthopedic implants. Because it is a free-standing structure rather than a surface coating, it allows for the development of completely porous devices.
"This was the anticipated outcome of our Zimmer alliance relationship and is the next exciting step for Implex in applying our technology to the needs of orthopedic patients," said Alex Khowaylo, Implex president and CEO. "All of us at Implex look forward to playing an expanding role in strengthening Zimmer's joint reconstruction leadership and in expanding the company's spinal franchise."
The acquisition is expected to close in the first quarter of 2004.
Zimmer stock closed Monday on the New York Stock Exchange at $65.35, up 2.9 percent on volume of 731,000 shares.
On the Net:
www.zimmer.com [[In-content Ad]]