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 Exhibit 99.2
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
Spine Market 3 Agenda Transaction Summary 4 Transaction Overview 1 Overview of LDR 2
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 compreh
Slide 5: Transaction Overview
Purchasing LDR for $37.00 per share in cash via tender offer Total purchase price ~$1.0 billion Price ~5.5x 2016 revenue (midpoint of LDR management full-year revenue guidance) Valuation Expected close in third quarter of 2016 Subject to customary closing conditions Timing Adjusted diluted EPS 2017:
Slide 6: LDR At-A-Glance
Overall Trial Success Through 5 Years Focus on Spine Two Exclusive Technology Platforms ü Mobi-C® ü MIVoTM Represented over 92% of Revenue in 2015 Attractive Financial Profile $164M Revenue in 2015 21% Growth CC in 2015 v 2014 83.4% Gross Margin in 2015 Geographic Mix U.S.: 81% Revenue in 2015 OUS:
Slide 7: Mobi-C Cervical Disc Replacement Device
Mobi-C Cervical Disc Replacement Device First and only artificial cervical disc approved in the U.S. for both one- and two-level indication U.S. Approval in August 2013 PMAs started in 2005 One of the largest prospective, randomized clinical studies ever completed in spine ~600 patients: 24 centers
Slide 8: Current U.S. Cervical Disc Replacement Market Opportunity
Current U.S. Cervical Disc Replacement Market Opportunity Mobi-C is uniquely well-positioned to be the market leader: The first and currently only on label two-level indication Overall superiority claim for two-level application through 5 years Over 450 issued patents worldwide Simplified surgical t
Slide 9: LDR: Revenue Through Exclusive Technology
LDR: Revenue Through Exclusive Technology 21% CAGR – Total Revenue 129% CAGR – Mobi-C 16% Growth 2015 v 2014 (21% CC) Source: LDR ($ in millions) $
Slide 10: Snapshot of Today's Spine Market
Largest musculoskeletal market: *~$10bn 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 unique products Snapshot of Today’s Spine Market Spine Market Share
Slide 11: Comprehensive Spine Portfolio
Comprehensive Spine Portfolio Acquisition will create a comprehensive Spine portfolio, adding high growth cervical disc replacement and zero profile fusion products Complex Spine and Biologics MIS Cervical Disc Replacement Exclusive Technology Platforms Existing Portfolio
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 Expect to
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 portfolio
Slide 14: Questions & Answers
Questions & Answers @ zimwer Biomer
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