H.I.G. Capital Acquires the Spine Business of ZimVie Rebranded as Highridge Medical

Rhea-AI Summary

H.I.G. Capital announces the acquisition of ZimVie Inc.'s Spine division, now operating as Highridge Medical. Highridge is a leader in the global spinal device market, with a strong bone healing therapies portfolio. The Company will be led by experienced industry executives and aims to enhance spine care through R&D and innovation.

Insights

Market Research Analyst

The acquisition of ZimVie's Spine division by an affiliate of H.I.G. Capital and its subsequent rebranding to Highridge Medical signifies a strategic expansion within the global spinal device market. This move is indicative of H.I.G. Capital's continued investment in the medical device sector, a growing industry that is experiencing innovation and increased demand due to aging populations and advancements in medical technologies.

From a market perspective, the formation of Highridge as the largest privately held spine business can potentially alter market dynamics, influencing competitive strategies and possibly leading to consolidation trends within the sector. Highridge's commitment to R&D and product innovation is expected to drive the evolution of spine care solutions, which could result in enhanced market offerings and improved patient outcomes. However, the success of this strategy hinges on effective integration of the acquired assets and the ability to maintain or improve upon the clinical evidence supporting the efficacy of Highridge's product portfolio.

For stakeholders, including distributors and surgeons, the partnership with H.I.G. may provide increased support and potentially broader product offerings. However, the impact on market share and the competitive response from other industry players, such as Medtronic and Boston Scientific, will be important to monitor over the short to long term.

Financial Analyst

The financial implications of H.I.G. Capital's acquisition are multifaceted. The deal likely involves a substantial capital outlay, given the size of Highridge Medical and its positioning as a market leader in bone healing therapies. The investment by H.I.G. signals confidence in Highridge's potential for revenue growth and profitability, which could be realized through operational efficiencies, expanded R&D and strategic acquisitions.

For investors, the key metrics to watch will be Highridge's revenue growth rate, market share expansion and R&D spend as a percentage of sales. These will provide indicators of the company's performance and its ability to innovate and capture additional market segments. However, it is also important to consider the risks associated with integrating acquisitions and the potential for increased competition as Highridge seeks to expand its market presence.

Given H.I.G.'s history of successful exits in the medical device sector, such as the acquisitions of Vertiflex by Boston Scientific and Neuwave Medical by J&J, investors may anticipate a similar long-term strategy for Highridge, potentially leading to an eventual sale or IPO. Nonetheless, the timing and success of such an exit strategy will depend on Highridge's market performance and broader industry conditions.

Medical Device Industry Expert

The spinal device market is highly specialized, requiring significant expertise in both product development and regulatory compliance. Highridge Medical's strategy to invest in innovation and expand its product offerings aligns with industry trends towards minimally invasive surgical techniques and personalized medicine. The leadership team's experience is a critical factor in navigating these trends, with Glen Kashuba and Rebecca Whitney's industry backgrounds providing valuable insight into market needs and development pathways.

Moreover, the involvement of Eric Major and Chris O’Connell on the Board of Directors suggests an emphasis on strategic growth and operational expertise. Their respective experiences at K2M Group Holdings and Medtronic could bring best practices to Highridge, potentially enhancing its competitive edge.

Yet, the success of Highridge will also depend on its ability to maintain strong relationships with surgeons, who are key decision-makers in the adoption of new spinal devices. As such, the company's commitment to surgeon satisfaction and patient outcomes will be important in ensuring its products are preferred over competitors'. This focus on clinical outcomes is not just a matter of product quality, but also of regulatory importance, as it impacts the ability to gain and maintain market approvals worldwide.

MIAMI--(BUSINESS WIRE)-- H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $60 billion of capital under management, is pleased to announce that one of its affiliates has completed the acquisition of the Spine division of ZimVie, Inc (“ZimVie”, NYSE: ZIMV). The acquired business will operate as an independent entity and has been renamed Highridge Medical (“Highridge” or the “Company”).

Headquartered in Westminster, CO, Highridge is a leader in the global spinal device market that develops, manufactures, and delivers a comprehensive portfolio of products and solutions designed to treat a wide range of spine pathologies. The Company has a market-leading portfolio of bone healing therapies and will be led by a team of seasoned executives from the medical device industry. Glen Kashuba will join Highridge as the Chief Executive Officer and Rebecca Whitney will continue as President of Highridge. Eric Major, the founder and former CEO of K2M Group Holdings, will serve as Executive Chairman of the Board of Directors, and Chris O’Connell, former EVP & Group President at Medtronic and CEO of Waters Corporation, will also join the Company’s Board of Directors.

Glen Kashuba commented, “Highridge has a robust foundation of spine solutions supported by extensive clinical evidence and patient outcomes to build upon. The Company is committed to improving spine care by investing in R&D, product innovation and introducing additional product offerings to restore mobility and alleviate pain for patients around the world. We believe our partnership with H.I.G. to create the largest privately held spine business in the industry will generate lasting benefits for distributors, surgeons, and patients.”

Rebecca Whitney added, “We are excited to begin this next chapter with H.I.G. The current management team has made significant progress across the organization, and we are encouraged by the growth opportunities ahead for our business. We believe this partnership will solidify Highridge’s market leading position and will deliver increased value to the surgeons and patients we serve.”

"I am thrilled to embark on this new chapter alongside Highridge and H.I.G.," stated Eric Major. "We are committed to a culture of rapid innovation, informed by pioneering surgeons, and driven by our dedicated team. We will expand and continue to invest in our strong technology portfolio of best-in-class solutions.”

“We are excited to partner with Glen, Rebecca, and Highridge’s exceptional management team to enhance the Company’s leadership position in the market,” said Mike Gallagher, Managing Director at H.I.G. “Highridge has a solid foundation with a market-leading product portfolio, strong surgeon satisfaction, and exceptional patient outcomes.”

Gwen Watanabe, Managing Director at H.I.G., added, “H.I.G. has followed the spine market closely for many years, and we believe Highridge is uniquely positioned to succeed in this market. We are looking forward to significant growth through operational excellence, increased investment into our R&D pipeline, and strategic acquisition opportunities.”

H.I.G.’s investment in Highridge represents its latest transaction in the medical device sector. Other H.I.G. medical device investments include Augmedics, Vertiflex (acquired by Boston Scientific), Neuwave Medical (acquired by J&J), and Intact Vascular (acquired by Philips).

About Highridge

Highridge is a global medical device company focused on designing and commercializing novel and proprietary products and solutions for the treatment of patients suffering from spine disorders. For more information, visit highridgemedical.com.

About H.I.G. Capital

H.I.G. is a leading global alternative investment firm with $60 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach:

• H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
• H.I.G.’s debt funds invest in senior, unitranche, and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
• H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
• H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The Firm's current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.

*Based on total capital raised by H.I.G. Capital and its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240401181472/en/

Mike Gallagher

Managing Director

mgallagher@hig.com

Bruce Robertson

Managing Director

brobertson@hig.com

Gwen Watanabe

Managing Director

gwatanabe@hig.com

1450 Brickell Avenue

31^st Floor

Miami, FL 33131

P: 305.379.2322

hig.com

Source: H.I.G. Capital

FAQ

What is the name of the company that acquired ZimVie Inc.'s Spine division?

H.I.G. Capital completed the acquisition of ZimVie Inc.'s Spine division, now operating as Highridge Medical.

Where is Highridge Medical headquartered?

Highridge Medical is headquartered in Westminster, CO.

Who is the Chief Executive Officer of Highridge Medical?

Glen Kashuba will join Highridge as the Chief Executive Officer.

Who is the President of Highridge Medical?

Rebecca Whitney will continue as President of Highridge Medical.

Who is the Executive Chairman of the Board of Directors at Highridge Medical?

Eric Major, the founder and former CEO of K2M Group Holdings, will serve as Executive Chairman of the Board of Directors.