Wright Medical and Tornier Complete Merger and Create Premier High-Growth Extremities-Biologics Company
October 01 2015 - 9:15AM
Wright Medical Group N.V. (NASDAQ:WMGI) announced today that it has
successfully completed the previously announced merger of Wright
Medical Group, Inc. and Tornier N.V. 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, Tornier was renamed
“Wright Medical Group N.V.”
Wright Medical Group, Inc. shares will cease trading on the
NASDAQ Global Select Market at the close of business today. Wright
Medical Group N.V. ordinary shares will begin trading under the
symbol “WMGI” on the NASDAQ Global Select Market on Friday, October
2, 2015.
Robert Palmisano, president and chief executive officer of
Wright, stated, “The culmination of this merger marks a significant
milestone for our company, creating the premier, high-growth
Extremities-Biologics company uniquely positioned with leading
technologies and specialized sales forces in three of the fastest
growing areas of orthopedics – Upper Extremities, Lower Extremities
and Biologics. By bringing together the extensive and
innovative capabilities of both Wright and Tornier, we can extend
our leadership position and further accelerate our growth
opportunities and path to profitability, all of which we believe
will generate long-term value for our shareholders. This is
also an exciting day for our employees as we officially join forces
to pursue our shared commitment to serving extremities specialists
and building the leading global business in this market.”
Under the terms of the transaction, each outstanding share of
Wright common stock was exchanged for 1.0309 ordinary shares of
Tornier.
The combined company will conduct business as Wright Medical
Group N.V. and will leverage the global strengths of both product
brands as a pure play Extremities and Biologics business.
That leadership will be further enhanced by the recent U.S. Food
and Drug Administration (FDA) premarket approval of Augment® Bone
Graft, which adds additional depth to what will be one of the most
comprehensive extremity product portfolios in the industry as well
as providing a platform technology for future new product
development. The highly complementary nature of the two
businesses gives the combined company significant diversity and
scale across a range of geographies and product categories.
Once integrated, Wright continues to anticipate revenues of the
combined business growing in the mid-teens and adjusted EBITDA
margins approaching 20% in three to four years. The amount of
cost synergies is expected to be in the range of $40 million to $45
million anticipated to be fully realized by the third year after
completion of the transaction. Expense synergy opportunities
include: public company expenses, overlapping support function and
systems costs, as well as process and vendor consolidation
opportunities across the business.
An investor presentation will be available on Wright’s investor
relations website at www.wright.com.
Guidance
As a result of closing this transaction, Wright will provide
2015 guidance for the combined company on its upcoming third
quarter earnings call, which is presently scheduled for November 4,
2015, at 3:30 p.m. Central Time.
Internet Posting of Information
Wright routinely posts information that may be important to
investors in the “Investor Relations” section of its website at
www.wright.com. The company encourages investors and
potential investors to consult our website regularly for important
information about us.
About Wright
Wright Medical Group N.V. is a global medical device company
focused on providing extremity and biologic solutions that enable
clinicians to alleviate pain and restore their patients’
lifestyles. The company is a recognized leader of surgical
solutions for the upper extremity (shoulder, elbow, wrist and
hand), lower extremity (foot and ankle) and biologics markets,
three of the fastest growing segments in orthopedics. For more
information about Wright, visit www.wright.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release includes forward-looking statements.
These forward-looking statements generally can be identified by the
use of words such as “anticipate,” “expect,” “could,” “may,”
“will,” “believe,” “estimate,” and other words of similar
meaning. Forward-looking statements in this press release
include, but are not limited to, statements about the benefits of
the merger; the combined company’s growth opportunities, path to
profitability and long-term value for shareholders and its future
financial outlook, including future revenues, adjusted EBITDA
margins and cost synergies. Each forward-looking statement
contained in this press release is subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statement. Applicable
risks and uncertainties include, among others, the failure to
integrate the businesses and realize synergies and cost-savings
from the transaction or delay in realization thereof; operating
costs and business disruption following the transaction, including
adverse effects on employee retention and on business relationships
with third parties; transaction costs; actual or contingent
liabilities; the adequacy of the combined company’s capital
resources; other business effects, including the effects of
industry, economic or political conditions outside of Wright’s
control; failure to achieve the anticipated benefits from approval
of Augment® Bone Graft, and the risks identified under the heading
“Risk Factors” in Wright Medical Group, Inc.’s Annual Report on
Form 10-K, which was filed with the SEC on February 26, 2015, and
Tornier’s Annual Report on Form 10-K, filed with the SEC on
February 24, 2015, as well as both companies’ subsequent Quarterly
Reports on Form 10-Q and other information filed by each company
with the SEC. Investors should not place considerable
reliance on the forward-looking statements contained in this press
release. You are encouraged to read Wright’s and Tornier’s
filings with the SEC, available at www.sec.gov, for a discussion of
these and other risks and uncertainties. The forward-looking
statements in this press release speak only as of the date of this
release, and Wright undertakes no obligation to update or revise
any of these statements. Wright’s business is subject to
substantial risks and uncertainties, including those referenced
above. Investors, potential investors, and others should give
careful consideration to these risks and uncertainties.
Investors & Media:
Wright Medical Group N.V.
Julie D. Tracy
Chief Communications Officer
(901) 290-5817 (office)
julie.tracy@wmt.com
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