Osstem Implant Co. in Advanced Talks to Acquire ZimVie

SOUTH KOREA: According to a recent report published by Bloomberg, South Korean dental implant manufacturer Osstem Implant Co. is reportedly in advanced negotiations to acquire ZimVie Inc., a New York-listed peer in the dental industry. This development marks a significant move in the global dental implant market, potentially reshaping the competitive landscape.

Deal Progression and Market Response

The report, authored by Vinicy Chan, indicates that Osstem has submitted a final bid for ZimVie and is in the process of securing financing for the potential acquisition. However, sources close to the matter, speaking on condition of anonymity, cautioned that while discussions are at an advanced stage, the deal could still fall through, and other potential buyers might emerge.

Osstem Implant Buys Brazil’s 3rd Largest Dental Implant Company

The news has already had a notable impact on ZimVie’s stock performance. Bloomberg reports:

“Shares in ZimVie rose about 14% in premarket trading on Thursday following the Bloomberg News report. It had a market value of about $517 million as of Wednesday.”

This surge follows a previous spike in ZimVie’s stock price, which “surged almost 25% on June 25 when Bloomberg News reported that the Palm Beach, Florida-based firm had been working with an adviser after receiving interest from potential buyers.”

Background on the Companies Involved

ZimVie, a relatively new entity in its current form, was spun off from Zimmer Biomet Holdings Inc. in 2022. The company has a global presence, operating in the United States, Switzerland, and China, with a workforce exceeding 1,800 employees. Recently, ZimVie completed the sale of its spine business to H.I.G. Capital for $375 million in April, potentially streamlining its operations in preparation for this potential acquisition.

Osstem Implant Promotes Global Hub for Dental Training

On the other hand, Osstem Implant Co., founded in 1997, has established itself as a major player in the dental implant industry. The Bloomberg article notes:

“Osstem is the world’s fourth-largest dental implant material manufacturer and also sells dental equipment and pharmaceutical products, its website shows.”

The South Korean company’s potential acquisition of ZimVie could significantly boost its global market position and expand its product portfolio.

Implications for the Dental Implant Industry

This potential acquisition comes at a time of increasing consolidation in the dental implant and medical device sectors. The involvement of private equity firms in recent dental industry transactions is notable, with Bloomberg reporting that “MBK Partners and Unison Capital last year took the Seoul-based company [Osstem] private, and Mubadala Investment Co. subsequently invested in it.”

The dental implant market is highly competitive and technologically driven, with companies constantly seeking to innovate and expand their market share. If successful, this acquisition could provide Osstem with enhanced access to global markets and potentially lead to synergies in research and development.

Conclusion

As the dental implant industry continues to evolve, this potential acquisition between Osstem and ZimVie represents a significant development. While the outcome of the negotiations remains uncertain, the market’s reaction suggests that investors see potential value in the combination of these two dental implant manufacturers. As always, the dental community will be watching closely to see how this potential deal might impact the broader landscape of dental care and technology.