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Orthopedic and Dental Industry News Complete Archive »

Wright Medical and Tornier Complete Merger BY ANDREW VAHRADIAN, OCTOBER 1, 2015

Wright Medical and Tornier announced the completion of all-stock merger between the two companies. The transaction was first announced in October 2014.

Under the terms of the merger agreement, a wholly-owned subsidiary of Tornier merged with and into Wright Medical Group, Inc., with Wright Medical Group, Inc. continuing as the surviving company and a wholly-owned subsidiary of Tornier. Upon completion of the merger, the combined company was renamed "Wright Medical Group N.V." and its ordinary shares will begin trading on the NASDAQ Global Select Market on Friday, October 2, 2015 under the ticker "WMGI".

The merger creates a pure play Extremities-Biologics company with comprehensive and complementary upper and lower extremity product portfolios. Furthermore, the deal provides the company with a significant amount of diversity and scale across various geographies and product categories, expands the capability of selling biologic products across an expanded upper and lower extremities product portfolio, and combines two research and development teams, all with the aim of accelerating the company's route to profitability and a stronger financial profile.

The combined company's annual revenues will be greater than $600 million and be roughly split: 41% Lower Extremity, 40% Upper Extremity, 12% Sports Medicine & Biologics and 9% large joint. Once integrated, the companies anticipate revenues of the combined business growing in the mid-teens and adjusted EBITDA margins approaching 20% in three to four years.

The company projects the amount of cost synergies to be in the range of $40 to $45 million and are expected to be fully realized by the third year after completion of the transaction. Cost synergy opportunities include: public company expenses, overlapping support function and systems costs, as well as process and vendor consolidation opportunities across the business.

The combined company will be domiciled in the Netherlands with its Lower Extremity & Biologics business based in Memphis, TN, its Upper Extremity businesses within Tornier’s existing facility in Bloomington, MN and its U.S. engineering center in Warsaw, IN.

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