Shareholders of Wright Medical Group Inc. and Tornier N.V. have approved the proposed merger between the two companies.
“We are convinced this combination will create the premier, high-growth Extremities-Biologics company with a broad global reach,” Robert Palmisano, president/CEO of Memphis, Tenn.-based Wright Medical, said in a news release. “Together, we will have one of the most comprehensive upper extremity, lower extremity and biologic product portfolios in the market, extending our leadership position and further accelerating our growth opportunities and path to profitability, all of which we believe will generate long-term value for our shareholders.”
The deal now awaits approval by the U.S. Federal Trade Commission, and could close by the third quarter. In order to alleviate certain concerns, Tornier is looking to divest a portion of its lower extremity lines.
“Both companies have built a deep and loyal customer base and have highly complementary product portfolios, positioning the combined entity to deliver meaningful value to our shareholders,” said David Mowry, president/CEO of Tornier. “We believe that partnered together, Wright and Tornier will become the fastest-growing company in the extremities-biologics industry.”
Shareholders also approved proposals for forming a combined board of directors and to change the company's name to Wright Medical Group N.V.
The legal address for Wright Medical Group N.V., will be located in the Netherlands, where Tornier has been based for about eight years. Wright's U.S. headquarters will remain in Memphis.
Announced in Oct. 2014, the merger is worth an estimated $3.3 billion. As structured, when the deal closes, Wright shareholders will own 52 percent of the combined company's shares and Tornier's investors will own approximately 48 percent.