News Release
WARSAW — Zimmer Biomet announced on Tuesday it would acquire Paragon 28, a foot and ankle company located in Englewood, Colo.
To be clear, this has nothing to do with Paragon Medical, an orthopedic company headquartered in Pierceton.
The $1.1 billion deal will give Zimmer Biomet access to Paragon 28’s surgical implants and equipment used to treat foot and ankle ailments while bolstering its fracture and trauma, and joint replacement businesses, the Warsaw-based company said in a news release.
Under the terms of the deal, Zimmer Biomet will make an upfront payment of $13.00 per share in cash, which represents an 8.3% premium to Paragon 28’s closing price on Tuesday.
Shares of Paragon 28 rose 9.3% following the announcement.
“This proposed transaction further diversifies Zimmer Biomet’s portfolio outside of core orthopedics and positions us well in one of the highest growth specialized segments in musculoskeletal care, while creating cross-selling opportunities in the rapidly growing ASC space,” said Ivan Tornos, President and Chief Executive Officer of Zimmer Biomet.
“Paragon 28’s broad and innovative foot and ankle portfolio, robust product pipeline and dedicated and highly trained sales force, combined with Zimmer Biomet’s global reach and capabilities, will uniquely position us to address the unmet patient needs of this highly complex anatomy,” Tornos said.
Albert DaCosta, Chairman and CEO of Paragon 28, added:
“We are incredibly proud of the legacy we have built at Paragon 28 as an industry leader committed to continuously improving the outcomes and experiences of patients suffering from foot and ankle conditions.”
“Joining Zimmer Biomet is an exciting new chapter for Paragon 28 and an incredible opportunity to advance our mission and continue to deliver groundbreaking solutions in the foot and ankle segment,” DaCosta said.
Zimmer plans to fund the transaction through a combination of cash and debt financing and expects to close it in the first half of 2025.
Paragon 28 was established in 2010. The name “Paragon 28” was chosen to reflect its focus foot and ankle devices.
