- Orthofix Medical Inc OFIX and SeaSpine Holdings Corp SPNE have agreed to merge into one All-share merger of equals.
- Each SeaSpine share will be exchanged for 0.4163 Orthofix shares.
- Upon closing of the transaction, Orthofix shareholders will own approximately 56.5% of the combined company and SeaSpine shareholders will each own approximately 43.5% of the combined company.
- The combined company will be one of the world’s leading spine and orthopedics companies with highly complementary portfolios of biologics, spine hardware, bone growth therapies, specialty orthopedic solutions and surgical navigation systems.
- With products sold in 68 countries worldwide, approximately 1,600 employees and a global R&D and manufacturing footprint, the new company would generate sales of approximately $693 million.
- The transaction is expected to contribute to Orthofix’s standalone Adjusted EBITDA for two full years after closing. Upon full realization of synergies, it is expected to have a positive impact on SeaSpine’s existing return on invested capital.
- Upon completion of the transaction, the combined company’s board of directors will consist of nine directors, five of whom will be appointed by Orthofix and four by SeaSpine.
- Jon Serbousek will serve as Executive Chairman and Keith Valentine will serve as President and CEO.
- The transaction is expected to close in the first quarter of 2023.
- Price promotion: OFIX stock is down 20.3% to $14.66 and SPNE stock is up 6.01% to $5.91 as of Tuesday’s latest check.
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