Wright Medical Completes Divestiture of Large Joints Business

Wright Medical Group N.V. announced the closing of the transaction to divest its large joints (hip/knee) business to Corin Orthopaedics Holdings Limited (Corin).  Following a required consultation process with its employee works council and health and safety committee in France, Wright accepted the previously announced binding offer from Corin, and on October 21, 2016, Wright and Corin subsequently entered into a business sale agreement and simultaneously completed and closed the transaction.
 
Under the terms of the agreement, Corin acquired the large joints business for the previously announced €29.7 million in cash (or approximately $32.3 million based on currency exchange rates on October 21, 2016).  Net after-tax proceeds to Wright, after net working capital adjustments and payment of estimated transaction and transition costs, are anticipated to be approximately $20 million.
 
Robert Palmisano, president and chief executive officer of Wright Medical, stated, “The completion of the sale of this business to Corin should enable both businesses to flourish as separate companies focused in their unique market spaces with strong management teams that will position them for continued success.  We will now devote our full resources and attention on accelerating growth opportunities in the high-growth Extremities and Biologics markets and believe this will enhance our ability to create significant shareholder value.  We are grateful to our large joint employees for their dedication and hard work.”