A new powerhouse in the extremities market? 8 things to know about the Wright Medical Group-Tornier merger

Spinal Tech

Wright Medical Group and Tornier are joining forces to wield power in the extremities and biologics markets.

The companies announced a definitive merger agreement. Here are five quick facts about the merger:

 

1. The companies will merge in an all stock transaction with a combined equity value of around $3.3 billion.

 

2. Both companies have unanimous approval from the boards of directors.

 

3. Outstanding shares of Wright common stock can be exchanged for 1.0309 ordinary shares of tornier.

 

4. After the company has merged, Wright shareholders will own around 52 percent of the combined company shares on fully diluted bases. Tornier shareholders will own the rest.

 

5. The exchange ratio implies a per share value for Tornier that represents a 28 percent premium to Tornier's closing share price on Oct. 24.

 

6. After the transaction the company will do business as Wright Medical Group N.V. and leverage the global strength of both brands in the Extremities-Biologics space.

 

7. The new midsized company will have headquarters in Memphis, Tenn., where Wright Medical's current headquarters are.

 

8. Robert Palmisano will become president and CEO of the company; current Tornier president and CEO David Mowry will become executive vice president and COO of the combined company.

 

"Together, we will have one of the most comprehensive upper and lower extremity product portfolios in the market, extending our leadership position and further accelerating our growth opportunities and path profitability, all of which we believe will generate long-term value for our shareholders," said Mr. Palmisano. "In addition, this will provide our employees with opportunities for career growth and development as part of a much larger, dynamic organization."

 

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