Zimmer Biomet Holdings, Inc. · NYSE:ZBH
Zimmer Biomet — Merger or Acquisition (June 2016)
14 slides from Zimmer Biomet's merger presentation, Jun 7, 2016
Slide 1: Zimmer Biomet Announces Agreement to Acquire LDR
Zimmer Biomet Announces Agreement to Acquire LDR David Dvorak President and CEO Christophe Lavigne LDR Co-Founder, Chairman, President and CEO Dan Florin SVP and CFO Adam Johnson Group President, Spine, CMF and Thoracic, and Dental June 7, 2016
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking information related to Zimmer Biomet, LDR and the acquisition of LDR by Zimmer Biomet that involves substantial risks and uncertainties that could cause actual results to differ materially from thos
Slide 3: Agenda
Agenda 1 Transaction Overview 2 Overview of LDR 3 Spine Market 4 Transaction Summary 3
Slide 4: Highly Complementary Strategic Transaction
Highly Complementary Strategic Transaction • Highly strategic and complementary acquisition that strengthens one of Zimmer Biomet’s key franchises: Spine • Accelerated growth in the $10 billion Spine market, enabling Zimmer Biomet to gain a leading position in its fastest growing segment • Creates c
Slide 5: Transaction Overview
Transaction Overview LDR Transaction Overview • Purchasing LDR for $37.00 per share in cash via tender offer Price • Total purchase price ~$1.0 billion Valuation • ~5.5x 2016 revenue (midpoint of LDR management full-year revenue guidance) Integration • Proven track-record of successfully integrating
Slide 6: LDR At-A-Glance
LDR At-A-Glance Overall Trial•ü Success Mobi-C® Through Two Exclusive Technology ü MIVo TM 5 Years Platforms Focus on Spine • Represented over 92% of Revenue in 2015 Attractive • $164M Revenue in 2015 Financial • 21% Growth CC in 2015 v 2014 Profile • 83.4% Gross Margin in 2015 Geographic • U.S.: 81
Slide 7: Mobi-C Cervical Disc Replacement Device
Mobi-C Cervical Disc Replacement Device • First and only artificial cervical disc approved in the U.S. for both one- and two-level indication • U.S. Approval in August 2013 ̶ PMAs started in 2005 • One of the largest prospective, randomized clinical studies ever completed in spine ̶ ~600 patients: 2
Slide 8: Current U.S. Cervical Disc Replacement Market Opportunity
Current U.S. Cervical Disc Replacement Market Opportunity One and Two-Level Anterior U.S. Cervical Fusion Market Penetration Cervical Disc penetration into the ACDF1 procedure base will continue 30% Market Penetration 40% Market Penetration 50% Market Penetration to expand due to: • Increasingly bro
Slide 9: LDR: Revenue Through Exclusive Technology
LDR: Revenue Through Exclusive Technology 21% CAGR – Total Revenue ($ in millions) 129% CAGR – Mobi-C 16% Growth 2015 v 2014 (21% CC) $ 180 $164.5M 160 7.3% $141.3M 140 11.5% 120 $111.6M 55.5% 100 17.1% 80 61.9% 60 72.4% 40 37.2% 20 26.6% 10.5% 0 2013 2014 2015 Source: LDR 9
Slide 10: Snapshot of Today's Spine Market
Snapshot of Today’s Spine Market • Largest musculoskeletal market: *~$10bn Spine Market Share – Fastest growing segments • Cervical Disc • MIS • Complex Spine – Market dynamics are favorable • Demographics driving volume growth globally • Market share shifts driven by differentiated technologies and
Slide 11: Comprehensive Spine Portfolio
Comprehensive Spine Portfolio Existing Portfolio Exclusive Technology Platforms Complex Spine Cervical Disc and Biologics MIS Replacement Acquisition will create a comprehensive Spine portfolio, adding high growth cervical disc replacement and zero profile fusion products 11
Slide 12: Financial Summary
Financial Summary • Accelerates top-line growth with sustainable differentiated platform in Spine, the largest musculoskeletal market • Prudent use of cash and new borrowing under revolving credit facility to fund the transaction – expect to launch debt offering in Q3 to repay credit facility • Expe
Slide 13: Transaction Summary
Transaction Summary • Highly strategic and complementary acquisition that strengthens one of Zimmer Biomet’s key franchises: Spine • Accelerated growth in the $10 billion Spine market, enabling Zimmer Biomet to gain a leading position in its fastest growing segment • Creates comprehensive Spine port
Slide 14: Questions & Answers
Questions & Answers @ ZIMMER BIOMET
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