Paragon 28 Inc (FNA) News & EventsFNANews & EventsParagon 28 Inc

Paragon 28 announces expiration of HSR waiting period for pending acquisition

Paragon 2 (FNA) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976in connection with the previously announced acquisition of Paragon 28 by Zimmer Biomet Holdings (ZBH).

Zimmer Biomet to acquire Paragon 28 for $13.00 per share in cash upfront

Zimmer Biomet Holdings (ZBH) and Paragon 28 (FNA) announced they have entered into a definitive agreement for Zimmer Biomet to acquire all outstanding shares of common stock of Paragon 28 for an upfront payment of $13.00 per share in cash, corresponding to an equity value of approximately $1.1B and an enterprise value of approximately $1.2B. Paragon 28 shareholders will also receive a non-tradeable contingent value right entitling the holder to receive up to $1.00 per share in cash if certain revenue milestones are achieved. The CVR will be payable in whole or in part if net sales exceed $346M up to $361M (with the CVR payments calculated linearly between $0.00 and $1.00 if net sales are between $346M-$361M) during Zimmer Biomet's fiscal year 2026. The board of directors of each of Zimmer Biomet and Paragon 28 has unanimously approved the proposed transaction. The proposed transaction is expected to immediately accelerate Zimmer Biomet's revenue growth. Paragon 28 has announced net revenue for the full year of 2024 to be in a range of $255.9M-$256.2M, representing 18.2% to 18.4% reported growth over the prior fiscal year. Zimmer Biomet expects the proposed transaction, considering the impact of financing, to be approximately 3% dilutive to adjusted earnings per share in 2025, about 1% dilutive to 2026 adjusted earnings per share and accretive to adjusted earnings per share within 24 months of deal close. Zimmer Biomet plans to fund the proposed transaction through a combination of cash on the balance sheet and other available debt financing sources. Zimmer Biomet expects to maintain a strong balance sheet and to continue to support its stated capital allocation priorities. Closing of the proposed transaction is subject to receipt of required regulatory approvals, approval by Paragon 28 stockholders and other customary closing conditions, and is anticipated to close in the first half of 2025.

Paragon 28 falls -9.5%

Paragon 28 is down -9.5%, or -$1.02 to $9.72.