ZimVie [NASDAQ:ZIMV], a global manufacturer of dental implants and spinal devices, is working with an investment bank to consider strategic alternatives in response to recent inbound acquisition approaches, according to three sources familiar with the situation.
Westminster, Colorado-based ZimVie, which has a market cap of USD 287m and an enterprise value of around USD 770m, was spun off from former parent company Zimmer Biomet [NYSE:ZBH] in March 2022 in a move to bring “strategic focus to its portfolio,” the company said in a press release at the time of the spinoff.
It is unclear which bank is advising ZimVie, but Guggenheim Securities and JPMorgan advised Zimmer on the spinout, according to filings.
ZimVie would likely appeal more to financial sponsors rather than strategics because it could face significant product overlap should it sell to a market competitor, two of the sources said.
ZimVie shares have fallen by more than half since its listing on NASDAQ at USD 25.53, making it “cheap,” according to one source. Its shares were recently trading at USD 10.85.
ZimVie sells products in more than 70 countries and has more than 2,700 employees, according to its website. It is the market leader in both cervical disc replacements and spinal tethering, the number two leader in dental biomaterials and the number four in premium dental implants, according to an investor presentation.
The company generated USD 225.4m in the first quarter of 2023, with a net loss of USD 30m, down from USD 235.6m in revenue and a net loss of USD 25.6m in the same period a year earlier, according to filings.
Representatives of ZimVie did not respond to requests for comment.
