Warsaw-based Zimmer Biomet Holdings Inc. (NYSE: ZBH) says its latest acquisition strengthens its growing sports medicine portfolio. The orthopedics device maker announced Thursday it has reached a definitive agreement to acquire Virginia-based Embody Inc., in a deal that could be worth as much as $270 million.
Embody is a privately held medical device company focused on soft tissue healing. It manufactures collagen-based implantable materials to help repair soft tissue injuries, such as tendon tears and rotator cuff repairs.
“Embody’s differentiated products and innovative pipeline in the area of sports medicine support our continued focus on and investment in high-growth markets and underscores our commitment to bringing meaningful new advances to patients and surgeons,” said Bryan Hanson, Chairman, president and CEO of Zimmer Biomet. “The planned acquisition of Embody is an important step in the ongoing transformation of ZB and the execution of our strategic priority to increase long-term growth and drive value creation.”
Zimmer Biomet says it will pay $155 million at closing and up to an additional $120 million if Embody achieves future regulatory and commercial milestones over the a three year period.
The transaction is subject to customary closing conditions and is expected to be completed next month.