Exactech to be sold to existing investors, restructured: 5 notes

Exactech filed for Chapter 11 bankruptcy and signed a comprehensive restructuring support agreement and asset purchase agreement with a group of its existing investors, according to an Oct. 29 news release.

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Five things to know: 

1. The investor group will be a “stalking horse” bidder to acquire Exactech’s assets and will support the company through restructuring.

2. Investors plan to provide about $85 million in additional financing to support the company’s operations.

3. Exactech will operate as normal during the restructuring process. The move will relieve Exactech from non-operating legacy liabilities and add new capital.

4. Darin Johnson, president and CEO of Exactech said, “Despite the strength of the underlying business, we face unsustainable liabilities associated with knee and hip litigation related to the packaging recalls we voluntarily initiated between 2021 and 2022. We take our commitment to patient well-being very seriously and have provided substantial out-of-pocket patient reimbursements and surgeon support for related expenses.”

5. Investors leading restructuring include private equity and alternative asset management firms who together represent more than $25 billion.

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