Wright Medical Group N.V. Completes Divestiture of Large Joints Business
October 24 2016 - 1:05AM
Wright Medical Group N.V. (NASDAQ:WMGI) today announced the closing
of the transaction to divest its large joints (hip/knee) business
to Corin Orthopaedics Holdings Limited (Corin). Following a
required consultation process with its employee works council and
health and safety committee in France, Wright accepted the
previously announced binding offer from Corin, and on October 21,
2016, Wright and Corin subsequently entered into a business sale
agreement and simultaneously completed and closed the transaction.
Under the terms of the agreement, Corin acquired the large
joints business for the previously announced €29.7 million in cash
(or approximately $32.3 million based on currency exchange rates on
October 21, 2016). Net after-tax proceeds to Wright, after
net working capital adjustments and payment of estimated
transaction and transition costs, are anticipated to be
approximately $20 million.
Robert Palmisano, president and chief executive officer of
Wright Medical, stated, “The completion of the sale of this
business to Corin should enable both businesses to flourish as
separate companies focused in their unique market spaces with
strong management teams that will position them for continued
success. We will now devote our full resources and attention
on accelerating growth opportunities in the high-growth Extremities
and Biologics markets and believe this will enhance our ability to
create significant shareholder value. We are grateful to our
large joint employees for their dedication and hard work.”
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 the Wright website regularly for
important information about Wright.
About Wright Medical Group N.V.
Wright Medical Group N.V. is a global medical device company
focused on extremities and biologics products. The company is
committed to delivering innovative, value-added solutions improving
quality of life for patients worldwide and is a recognized leader
of surgical solutions for the upper extremities (shoulder, elbow,
wrist and hand), lower extremities (foot and ankle) and biologics
markets, three of the fastest growing segments in
orthopaedics. For more information about Wright, visit
www.wright.com.
™ and ® denote trademarks and registered trademarks of Wright
Medical Group N.V. or its affiliates, registered as indicated
in the United States, and in other countries. All other
trademarks and trade names referred to in this release are the
property of their respective owners.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release includes forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally can be identified by the use
of words such as “anticipate,” “could,” “should,” “may,”
“will,” “believe,” “estimate,” “continue,” other words
of similar meaning and the use of future dates.
Forward-looking statements in this release include, but are not
limited to, statements about the future success of Wright’s
extremities and biologics business and its ability to create
significant shareholder value and the anticipated after-tax net
proceeds to Wright from the divestiture. Forward-looking statements
by their nature address matters that are, to different degrees,
uncertain. Each forward-looking statement contained in this 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, Wright’s post-closing obligations which will require Wright
to dedicate substantial resources, personnel and manufacturing
capacity that may add costs to its ongoing business and cause it to
incur unanticipated costs and liabilities and other general
business risks and uncertainties, including the timing of
regulatory approvals and introduction of new products; physician
acceptance, endorsement, and use of new products; failure to
achieve the anticipated benefits from approval of AUGMENT® Bone
Graft; the effect of regulatory actions, changes in and adoption of
reimbursement rates; product liability claims and product recalls;
pending and threatened litigation; risks associated with
international operations and expansion; the adequacy of Wright’s
capital resources and need for additional financing; and the risks
identified under the heading “Risk Factors” in Wright’s Annual
Report on Form 10-K for the fiscal year ended December 27, 2015
filed by Wright with the Securities and Exchange Commission (SEC)
on February 23, 2016 and Wright’s Quarterly Report on Form 10-Q for
the fiscal quarter ended June 26, 2016 filed by Wright with the SEC
on August 2, 2016. Investors should not place considerable reliance
on the forward-looking statements contained in this release.
Investors are encouraged to read Wright’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 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
Sr. VP, Chief Communications Officer
(901) 290-5817 (office)
julie.tracy@wright.com
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