DJOGlobal Signs Definitive Agreement to Acquire Certain Assets from Zimmer and Biomet
SAN DIEGO, CA, June 24, 2015 – DJO Global, Inc. (“DJO” or the “Company”), a leading global provider of medical device solutions for musculoskeletal health, vascular health and pain management, announced today that its subsidiary Encore Medical, L.P., dba DJO Surgical, has entered into an agreement with Zimmer Holdings, Inc. to purchase the Biomet CobaltTM Bone Cement, Optivac® Cement Mixing Accessories and Discovery® Elbow System for the U.S. marketplace.
“These product acquisitions are a part of a broader strategy to invest in our fast growing implant business,” said Mike Mogul, CEO of DJO Global. “We believe our surgical division is poised to continue its position as the fastest growing orthopedic implant company. I have always admired Cobalt Bone Cement’s color features which offer better visualization and much simpler packaging and the Discovery Elbow is extremely well-regarded.”
The Cobalt Bone Cement is a trusted and proven product with a substantial base of customers for hip, knee, shoulder, elbow and other orthopedic implant technologies. Cobalt offers a complete range of viscosities as well as antibiotic solutions for enhanced performance and patient safety. The unique Softpac packaging technology creates a safer, glassless environment and the user friendly Optivac system provides the best in modern cementing techniques for Cobalt as well as other cement technologies.
The Discovery Elbow will be DJO’s first elbow technology and builds upon the Company’s successful upper extremity portfolio and shoulder arthroplasty experience. The Discovery Elbow has over twelve years of successful clinical outcomes and is used by numerous top orthopedic clinicians throughout the world.
“This acquisition is very timely for us based on our disruptive entrance into the revision market with our Exprt® Revision Knee launched at AAOS this year and the Discovery Elbow provides great breadth to our strong upper extremity portfolio,” said Brady Shirley, President of DJO Surgical. “With three major launches planned across the Knee, Hip and Shoulder segments in each of the next three years, we are excited about our continued opportunities for growth.”
The transaction is expected to close within the next 10 days.
About DJO Global
DJO Global is a leading global developer, manufacturer and distributor of high-quality medical devices that provide solutions for musculoskeletal health, vascular health and pain management. The Company’s products address the continuum of patient care from injury prevention to rehabilitation after surgery, injury or from degenerative disease, enabling people to regain or maintain their natural motion. Its products are used by orthopedic specialists, spine surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers and other healthcare professionals. In addition, many of the Company’s medical devices and related accessories are used by athletes and patients for injury prevention and at-home physical therapy treatment. The Company’s product lines include rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management and physical therapy products. The Company’s surgical division offers a comprehensive suite of reconstructive joint products for the hip, knee and shoulder. DJO Global’s products are marketed under a portfolio of brands including Aircast®, Chattanooga, CMF™, Compex®, DonJoy®, Empi®, ProCare®, DJO® Surgical, Dr. Comfort® and ExosTM. For additional information on the Company, please visit www.DJOglobal.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements relate to, among other things, the Company’s expectations for its growth in revenue and Adjusted EBITDA and its opportunities to improve commercial execution and to develop new products and services. The words “believe,” “will,” “should,” “expect,” ”target,” “intend,” “estimate” and “anticipate,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based on the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the Company’s ability to control or predict. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to: the successful execution of the Company’s business strategies relative to its Bracing and Vascular, Recovery Sciences, International and Surgical Implant segments; the continued growth of the markets the Company addresses and any impact on these markets from changes in global economic conditions; the successful execution of the Company’s acquisition strategies; the impact of potential reductions in reimbursement levels and coverage by Medicare and other governmental and commercial payors; the Company’s highly leveraged financial position; the Company’s ability to successfully develop, license or acquire, and timely introduce and market new products or product enhancements; risks relating to the Company’s international operations; resources needed and risks involved in complying with government regulations; the availability and sufficiency of insurance coverage for pending and future product liability claims; and the effects of healthcare reform, Medicare competitive bidding, managed care and buying groups on the prices of the Company’s products. These and other risk factors related to DJO are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the Company’s ability to control or predict.
