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Orthopedic and Dental Industry News Complete Archive »

Wright Medical to Sell Legacy Tornier Large Joint Business to Corin Orthopaedics for $33M BY ANDREW VAHRADIAN, JULY 11, 2016

Wright Medical entered into an agreement to divest its hip and knee (large joint) businesses to Corin Orthopaedics for a purchase price of €29.7 million ($33 million), which values the portfolio at 0.9x 2016E revenues of $37 million and 6.0x the midpoint of 2016E EBITDA of $5-$6 million.

Under the terms of the all-cash transaction, Corin acquires the entire legacy Tornier large joints business which consists primarily of hip and knee replacement systems sold throughout France and other European countries. The portfolio includes Tornier's Dynacup and Meije Duo hip implants, and the company's HLS KneeTec and HLS Noetos knee implants.

Post-deal close, the legacy Tornier business headquarters will remain in Montbonnot, France. Wright will also retain the exclusive rights to use the "Tornier" brand name on its products, and after a transition period, the acquired products will transition to the "Corin" brand name.

This divestiture will allow Wright to better focus on its high-growth extremities and biologics businesses, and after taxes and deal costs, provides the company with an incremental $20 million of cash. For Corin, which is a U.K.-based medical device company focused on the hip and knee joint replacement markets, this deal expands the company's offerings with a clinically proven portfolio of hip and knee systems that is ingrained within the French and clinical community.

The deal is anticipated to close by the end 3Q:16 or early 4Q:16.

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