Zimmer Biomet to acquire foot and ankle specialist Paragon 28 for US $1.2 billion

USA – Zimmer Biomet, a global leader in musculoskeletal healthcare, has announced plans to acquire Paragon 28, a medical device company specializing in foot and ankle orthopedic solutions.

The deal, valued at approximately US $1.2 billion, will involve Zimmer Biomet purchasing all outstanding shares of Paragon 28 at US $13 per share in cash.

Founded in 2010, Paragon 28 offers a comprehensive range of surgical products for foot and ankle care, including solutions for fractures, trauma, deformity correction, and joint replacement.

The acquisition aims to strengthen Zimmer Biomet’s presence in the growing foot and ankle orthopedic segment while diversifying its portfolio beyond its core orthopedic offerings.

“This proposed transaction further diversifies Zimmer Biomet’s portfolio outside of core orthopedics and positions us well in one of the highest growth specialized segments in musculoskeletal care,” said Ivan Tornos, President and CEO of Zimmer Biomet.

He highlighted that Paragon 28’s innovative products, strong sales team, and extensive pipeline, combined with Zimmer Biomet’s global reach, would enable the companies to meet patient needs in this complex field.

Paragon 28’s Chairman and CEO, Albert DaCosta, shared his enthusiasm about the acquisition, stating, “Joining Zimmer Biomet is an exciting new chapter for Paragon 28 and an incredible opportunity to advance our mission and continue to deliver groundbreaking solutions in the foot and ankle segment.”

The financial benefits of the acquisition are expected to be significant. Paragon 28 has reported a revenue of US $255.9 to US $256.2 million for 2024, reflecting a growth rate of over 18% compared to the previous year.

Zimmer Biomet anticipates the transaction will accelerate revenue growth immediately and contribute positively to earnings within two years of the deal’s completion.

Zimmer Biomet plans to finance the acquisition through a mix of cash and debt, maintaining a strong balance sheet while pursuing its capital allocation priorities.

The deal is subject to regulatory approvals, approval by Paragon 28 shareholders, and other customary conditions. It is expected to close in the first half of 2025.

Further details about the financial impact of the acquisition will be discussed during Zimmer Biomet’s fourth-quarter 2024 earnings call scheduled for February 6, 2025.