Wright Medical, a healthcare device manufacturer based in Arlington, Tennessee, will buy BioMimetic for $190 million as part of a stock-and-cash deal. Wright Medical aims to expand its foot and ankle division with this new acquisition. If BioMimetic is able to meet all the milestones and incentives agreed on in the acquisition, the total deal could be worth as much as $380 million. BioMimetic is based in nearby Franklin, Tennessee.
According to a press release, Wright Medical will pay a 56 percent premium for BioMimetic over the current value of its common stock. In addition, BioMimetic’s shareholders may be entitled to an additional $6.50 for each share if the United States Food and Drug Administration approves BioMimetic’s Augment Bone Graft technology. The company’s Augment Bone Graft technology is currently undergoing review by the FDA for use in ankle and foot fusions.
Both companies expect the acquisition to finish by the first quarter of 2013. The boards at both Wright Medical and BioMimetic have approved the deal. However, the deal still needs to be approved by shareholders at BioMimetic.