Zimmer Biomet to Acquire Embody, Inc.

WARSAW, Ind./Jan. 5, 2023 — Zimmer Biomet Holdings, Inc. announced that it has reached a definitive agreement to acquire Embody, Inc., a privately-held medical device company focused on soft tissue healing, for $155 million at closing and up to an additional $120 million subject to achieving future regulatory and commercial milestones over a three year period. The acquisition is expected to be accretive to overall revenue growth and slightly dilutive to adjusted earnings per share in 2023. Both companies have been leaders in the use of additive manufacturing (3D printing) technologies for medical applications.

The acquisition includes Embody’s complete portfolio of collagen-based biointegrative solutions to support healing in the most challenging orthopedic soft tissue injuries – including the TAPESTRY^® biointegrative implant for tendon healing and TAPESTRY^® RC, one of the first arthroscopic implant systems for rotator cuff repair.

“Embody’s differentiated products and innovative pipeline in the area of sports medicine support our continued focus on and investment in high-growth markets and underscores our commitment to bringing meaningful new advances to patients and surgeons,” said Bryan Hanson, Chairman, President and CEO of Zimmer Biomet. “The planned acquisition of Embody is an important step in the ongoing transformation of ZB and the execution of our strategic priority to increase long-term growth and drive value creation.”

“We are excited for the potential to create value for patients and customers in new ways and believe the combination of Embody’s innovative products and Zimmer Biomet’s established portfolio will bring new solutions to the market that could redefine the standard of care,” said Jeff Conroy, Chief Executive Officer of Embody.

The transaction is subject to customary closing conditions and is expected to be completed in February 2023.

Guggenheim Securities is acting as financial advisor to Embody.