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Wright Medical Group, Inc. and MicroPort Scientific Corporation Enter Into Definitive Agreement Under Which MicroPort Will

  Wright Medical Group, Inc. and MicroPort Scientific Corporation Enter Into
  Definitive Agreement Under Which MicroPort Will Acquire Wright’s OrthoRecon
  Business

    Transaction Transforms Wright Medical into High Growth Extremities and
 Biologics Pure Play and Expands Growth Opportunities for OrthoRecon Business

                     Purchase Price of $290 Million Cash

 Wright to Host Conference Call Thursday, June 20, 2013, at 8:00 a.m. Central
                                     Time

Business Wire

ARLINGTON, Tenn. -- June 19, 2013

Wright Medical Group, Inc. (NASDAQ: WMGI) today announced a definitive
agreement under which MicroPort Medical B.V., a subsidiary of MicroPort
Scientific Corporation (HK: 0853), will acquire Wright’s OrthoRecon business.
The purchase price is $290 million, subject to a net working capital
adjustment, and is payable in cash at closing, which is expected to occur by
the end of the third quarter or early in the fourth quarter of 2013.

Wright’s OrthoRecon business consists of hip and knee implant products and
generated global revenue of approximately $269 million in 2012. The OrthoRecon
business has established hip and knee franchise brands including DYNASTY^® and
CONSERVE^® hips, PROFEMUR^® modular stems, SUPERPATH™ minimally invasive hip
surgical instrumentation, and ADVANCE^® and EVOLUTION^® medial-pivot knee
implants. According to industry research, the worldwide hip and knee
reconstruction market is approximately $14 billion in 2012. In addition, the
China Hip and Knee implant market is estimated to be approximately $1.3
billion by 2018 and is growing at approximately 17% per year.

Robert Palmisano, president and chief executive officer of Wright Medical,
stated, “Over the last 18 months, we have made significant progress in
transforming our business to dramatically accelerate growth in our foot and
ankle business, build a growing, global OrthoRecon business, and significantly
improve cash flow. This next step in our transformation should enable both
businesses to flourish as separate, global companies focused in their unique
market space with strong management teams that will position them for
continued success. In addition, as a smaller, high-growth Extremities company
with breakthrough biologic opportunities, we will now be able to devote our
full resources and attention on accelerating growth opportunities in this
area, including improving sales productivity, extending the global reach and
penetration of our products in key international markets, and seeking to gain
U.S. regulatory approval for Augment^® Bone Graft. We believe this will
enhance our ability to create significant shareholder value.”

Palmisano continued, “In my experience, companies are bought, not sold, and
such was the case in this transaction, as there were several suitors for this
very valuable business. We are pleased we have found an excellent strategic
buyer in MicroPort, a company that is deeply committed to the success of the
OrthoRecon business and will continue to provide the focus and investment to
enable it to reach its full potential. Also, very importantly, this will
provide our OrthoRecon employees with opportunities for career growth and
development. We are grateful to our OrthoRecon employees for their dedication
and hard work, and we look forward to working with MicroPort to ensure a
seamless transfer and the continued success of the OrthoRecon business as part
of MicroPort.”

After closing, the OrthoRecon business will continue to be headquartered in
Arlington, Tennessee and Ted Davis, who is currently president of Wright’s
OrthoRecon business, will lead the MicroPort Orthopedic business.

The transaction is subject to customary closing conditions, including
MicroPort shareholder approval and receipt of regulatory clearances.

Wright’s Extremities segment, which includes foot and ankle, biologics and
upper extremity, generated global revenues of approximately $214 million in
2012. Following the divestiture, Wright Medical expects to be well positioned
and committed to accelerating growth in its foot and ankle business and
increasing U.S. foot and ankle sales productivity to $1 million per rep in
2014. Additionally, Wright expects to be adjusted EBITDA positive in 2014 with
the opportunity for significant adjusted EBITDA growth in 2015 and beyond.

Net after-tax proceeds for Wright Medical, including transaction costs, are
estimated to be approximately $260 million. Wright intends to use these net
proceeds to fund transition costs of $25 million to $35 million and the
remainder to fund growth opportunities for its Extremities and Biologics
business and pay certain retained liabilities of the OrthoRecon business.

As a result of the transaction, Wright Medical plans to update its financial
guidance on its second quarter conference call, which is currently scheduled
for August 1, 2013, and its previous guidance is no longer valid. However,
Wright is providing Extremity segment revenue guidance for 2013 of
approximately $235 million to $240 million, which anticipates some potential
minor, short-term dis-synergies as a result of the transaction. Beginning in
the second quarter of 2013, the OrthoRecon segment will be accounted for as a
discontinued operation in Wright’s GAAP and non-GAAP income statements. Wright
plans to provide additional details regarding the financial impact of the
transaction when it reports it second quarter 2013 results.

An investor presentation will be available on Wright’s investor website at
www.wmt.com.

In connection with this transaction, Deutsche Bank Securities Inc. and Ropes &
Gray LLP advised Wright Medical.

Wright Medical’s Conference Call and Webcast

Wright Medical’s management team will host a conference call Thursday, June
20, 2013, starting at 8:00 a.m. Central Time. The live dial-in number for the
call is 866-788-0544 (U.S.) / 857-350-1682 (International). The participant
passcode for the call is “Wright.” To access a simultaneous webcast of the
conference call via the internet, go to the “Corporate - Investor Information”
section of the Company's website located at www.wmt.com.

A replay of the conference call by telephone will be available starting at
9:30 a.m. Central Time on June 20, 2013 and continuing through June 27, 2013.
To hear this replay, dial 888-286-8010 (U.S.) or 617-801-6888 (International)
and enter the passcode 53923011. A replay of the conference call will also be
available via the internet starting today and continuing for at least 12
months. To access a replay of the conference call via the internet, go to the
“Corporate - Investor Information - Audio Archives” section of the Company's
website located at www.wmt.com.

The conference call may include forward-looking statements. See the cautionary
information about forward-looking statements in the “Safe-Harbor Statement”
section of this press release.

About Wright Medical

Wright Medical Group, Inc. is a global orthopaedic company that provides
solutions that enable clinicians to alleviate pain and restore their patients’
lifestyles. The company is the recognized leader of surgical solutions for the
foot and ankle market and markets its products in over 60 countries worldwide.
For more information about Wright Medical, visit www.wmt.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” as defined under
U.S. federal securities laws. These statements reflect management's current
knowledge, assumptions, beliefs, estimates, and expectations and express
management's current view of future performance, results, and trends. Forward-
looking statements may be identified by their use of terms such as anticipate,
believe, could, estimate, expect, intend, may, plan, predict, project, will,
and other similar terms. Forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results to materially differ
from those described in the forward-looking statements. The reader should not
place undue reliance on forward-looking statements. Such statements are made
as of the date of this press release, and we undertake no obligation to update
such statements after this date. As with all transactions, there is a risk
that failure to obtain necessary approvals, or other intervening events, could
prevent the transaction described in this press release from closing, or could
delay the closing. In addition, risks and uncertainties that could cause our
actual results to materially differ from those described in forward-looking
statements are discussed in our filings with the Securities and Exchange
Commission (including those described in Item 1A of our Annual Report on Form
10-K for the year ended December 31, 2012, and as may be supplemented in our
Quarterly Reports on Form 10-Q). By way of example and without implied
limitation, such risks and uncertainties include: failure to realize the
anticipated financial and other benefits from the acquisition of BioMimetic
Therapeutics, Inc. or a delay in realization thereof; failure to obtain, or a
delay in obtaining, FDA approval of Augment Bone Graft, or a material
limitation on the scope of such approval; lower than anticipated market
acceptance of, or annual market demand for, Augment Bone Graft; future actions
of the United States Attorney's office, the FDA, the Department of Health and
Human Services or other U.S. or foreign government authorities, including
those resulting from increased scrutiny under the Foreign Corrupt Practices
Act and similar laws, that could delay, limit or suspend our development,
manufacturing, commercialization and sale of products, or result in seizures,
injunctions, monetary sanctions or criminal or civil liabilities; failure to
obtain the FDA or other regulatory clearances needed to market and sell our
products; any actual or alleged breach of the Corporate Integrity Agreement to
which we are subject through September 2015 which could expose us to
significant liability including exclusion from Medicare, Medicaid and other
federal healthcare programs, potential criminal prosecution, and civil and
criminal fines or penalties; adverse outcomes in existing product liability
litigation; new product liability claims; inadequate insurance coverage; the
possibility of private securities litigation or shareholder derivative suits;
demand for and market acceptance of our new and existing products; potentially
burdensome tax measures; recently enacted healthcare laws and changes in
product reimbursement which could generate downward pressure on our product
pricing; lack of suitable business development opportunities; inability to
capitalize on business development opportunities; product quality or patient
safety issues; challenges to our intellectual property rights; geographic and
product mix impact on our sales; our inability to retain key sales
representatives, independent distributors and other personnel or to attract
new talent; inventory reductions or fluctuations in buying patterns by
wholesalers or distributors; inability to realize the anticipated benefits of
restructuring initiatives; negative impact of the commercial and credit
environment on us, our customers and our suppliers; and the potentially
negative effect of our ongoing compliance enhancements on our relationships
with customers and our ability to deliver timely and effective medical
education, clinical studies, and new products.

Contact:

Wright Medical Group, Inc.
Julie D. Tracy, 901-290-5817
Sr. Vice President, Chief Communications Officer
julie.tracy@wmt.com
 
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