MiMedx Group Inc (MDXG) News & EventsMDXGNews & EventsMiMedx Group Inc

MiMedx to Acquire Sanara MedTech for $35 per Share

MiMedx Group (MDXG) and Sanara MedTech (SMTI) announced that they have entered into a definitive merger agreement under which MiMedx will acquire all of the outstanding shares of Sanara in a cash and stock transaction valued at $35 per Sanara share with a total enterprise value of approximately $350M. Under the terms of the agreement, Sanara shareholders will receive $33 in cash and 0.4735 shares of MiMedx common stock for each share of Sanara common stock they own, which represents a value of $2 per share, calculated based on the average closing price of MiMedx common stock of $4.22 for the last five consecutive trading days through and including July 28. The merger consideration represents a premium of 46% to Sanara's 30-day volume weighted average share price as of July 28. MiMedx expects to finance the cash portion of the transaction through a combination of cash on hand and a new, committed debt financing in the form of a $300M term loan, which has been secured with Hayfin Capital Management. In connection with the execution and delivery of definitive documentation with respect to the debt financing by Hayfin, MiMedx's existing credit agreement will be terminated and all amounts outstanding will be repaid in full. The transaction is expected to nearly double MiMedx's surgical revenue and is expected to be immediately accretive to MiMedx's revenue growth rate, gross margin and adjusted EBITDA margin. The company anticipates over $20M in run-rate cost synergies. On a combined basis, 2027 total revenue is expected to be well in excess of $400M with an adjusted EBITDA margin expected to be over 20%. The transaction has been unanimously approved by the board of directors of both companies and is expected to close by the end of the year, subject to approval by Sanara shareholders, the receipt of required regulatory approvals and other customary closing conditions. Centerview Partners is serving as exclusive financial advisor to MiMedx; Greenberg Traurig is serving as legal advisor. Truist Securities is serving as exclusive financial advisor to Sanara; Alston & Bird is serving as legal advisor. Joseph Capper, MiMedx CEO, said, "We are thrilled to announce the planned combination with Sanara MedTech and look forward to welcoming their team to the MIMEDX family in the near future. Over the last several years, MIMEDX has demonstrated the ability to drive strong, double-digit growth in surgical end markets. With Sanara, we will accelerate this effort and meaningfully expand our reach across several subspecialties. On a combined basis, 2027 total revenue is expected to be well in excess of $400 million with an adjusted EBITDA margin expected to be over 20%."

MiMedx Reports Q2 Revenue of $64.36M

Reports Q2 revenue $64.36M, consensus $63.46M. Joseph H. Capper, MiMedx Chief Executive Officer, commented, "During the second quarter, we delivered another strong performance in our Surgical franchise, with 15% year-over-year revenue growth balanced across our sheet and particulate products. Our sustained momentum in several Surgical settings represents a meaningful, long-term growth opportunity for the Company, and we are focused on expanding into other procedures."

MIMEDX Expects Adjusted EBITDA to Be Approximately Breakeven

Consensus $314.38M. Adjusted EBITDA is expected to be approximately breakeven on a full year basis. "While some disruption was expected, the challenges we are now seeing in the market, coupled with irrational behavior by some industry participants, has added complexity that could not have been anticipated. To compound matters, the wound care market is adjusting to the new reimbursement rules at an extremely slow pace. We are working closely with our customers to help them adapt to the changes. Importantly, as we exited the quarter, we saw promising signs of volume recovery in Wound Care Centers and Hospitals. On the other side of this transition, we will be competing in a far more attractive space and believe MIMEDX is uniquely positioned to lead the market. Our Surgical franchise continues to post double-digit top-line growth, with 50% growth over the past three years," concluded Capper.