Court Approves Exactech Restructuring Plan, Sale to Investor Group

Exactech’s fight for survival is finally over. A federal court has confirmed its restructuring plan and approved the sale of its assets to a new ownership group.

The sale enables the company’s new owners—Strategic Value Partners LLC (together with its affiliates, “SVP”), Stellex Capital Management LLC, and Greywolf Capital Management LP—to acquire substantially all of the company’s operations and assets. Exactech now can move past the restructuring process, with customary closing steps for the sale to be completed in the next few weeks.

Once the transaction closes, proven product lines such as the Equinoxe Shoulder; Vantage Ankle; Alteon and Spartan Hip; Truliant, Triverse and Newton Knee; and GPS navigation will transfer to the new company, as well as engineering and manufacturing expertise and product data gathered over 40 years.

“We are excited to work together to focus on the new company’s quality imperative, its commitment to innovation, and its goal of being the most trusted partner to orthopedic surgeons,” SVP Managing Director Clara Anderson stated. “Our team will continue to invest in the new company and accelerate opportunities to drive innovation and growth in order to give patients greater mobility and empower surgeons with the products, technologies and support they need to be successful.”

The new company will be led by incoming CEO Aurelio Sahagun, as well as a Board of Directors that will provide oversight of the new company’s strategy and governance.

The company filed an updated reorganization plan with the court in July, having reached an agreement with the Unsecured Creditors Committee (UCC) on a consensual blueprint to accompany the sale of its assets to a new ownership group.

The proposed plan was amended to include a new trust structure that allows general unsecured claimants, including litigation plaintiffs, to continue asserting claims through the trust as it pursues recoveries from non-debtor parties. Additionally, Exactech will receive approximately $60 million of additional financing (for approximately $150 million total), provided by Exactech’s new owners, to ensure adequate funding as the company continues its business as usual operations during the proceedings.

Exactech empowers orthopedic surgeons with implants, surgical instruments, and the Active Intelligence (AI) ecosystem of smart technologies to give patients the tools they need to regain mobility.

SVP is a global alternative investment firm that focuses on special situations, private equity, opportunistic credit and financing opportunities. The firm uses sourcing, financial, and operational expertise to unlock value in its portfolio companies. Today SVP manages approximately $22 billion in assets under management, and since inception, has invested more than $53 billion in capital. The firm, established by Victor Khosla in 2001, has over 200 employees, including more than 100 investment professionals, across its main offices in Greenwich (Conn.) and London, and a presence in Tokyo.

With offices in New York, Pittsburgh, Detroit, and London, Stellex Capital is a private equity firm with more than $3.9 billion in assets under management. Stellex seeks to identify and deploy capital in opportunities that stand to benefit from its operationally focused and hands-on approach to investing. Portfolio companies are supported by Stellex’s industry knowledge, operating capabilities, senior executives, strategic insights, and access to capital.

Founded in 2003, Greywolf Capital Management LP is a registered investment adviser with more than $3 billion in assets under management allocated across its Distressed/Special Situations, CLO Credit, and Hard Asset Strategies. The firm’s cohesive team of 32 includes 14 dedicated investment professionals. Greywolf combines the expertise developed over its history with time-tested portfolio management skills to offer attractive, risk-adjusted returns over the long-term with little correlation to the broad based markets.