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Exactech entered into a comprehensive restructuring support agreement and asset purchase agreement with a group of its existing investors, pursuant to which the investor group will serve as the “stalking horse” bidder to acquire substantially all of the company’s assets. The investor group will support the company through the restructuring process, including by providing approximately $85 million of additional financing to fund the company’s operations.
Throughout the restructuring process, the company will continue to operate as normal. The restructuring will relieve the company from non-operating legacy liabilities and facilitate an infusion of new capital.
The sale is being conducted pursuant to a voluntary reorganization process in front of the United States Bankruptcy Court for the District of Delaware and is subject to higher and better bids, court approval and other customary closing conditions.
The company has filed a number of “first-day” motions seeking court approval to maintain ordinary course operations throughout the sale process, including the continued payment of employee wages and benefits, as well as payments to sales representatives. In addition, the company will continue its research and development efforts during the process.
Exactech was taken private by TPG Capital in 2018. In 2023 Darin Johnson, then Exactech President, was promoted to Chief Executive Officer. Johnson had served as interim CEO since March 2023 and succeeded Jeffrey Binder, Chairman of Exactech’s Board of Directors.
“Our team has delivered strong performance and positive growth in 2024, and we are confident in the trajectory of our business,” said Darin Johnson, President and CEO. “However, despite the strength of the underlying business, we face unsustainable liabilities associated with knee and hip litigation related to the packaging recalls we voluntarily initiated between 2021 and 2022. We take our commitment to patient well-being very seriously and have provided substantial out-of-pocket patient reimbursements and surgeon support for related expenses. The process we are commencing today is intended to help us create a stronger foundation for long-term growth with an improved balance sheet and new capital as well as ensure that we can continue providing innovative, industry-leading implants for surgeons and their patients for years to come.”
Mr. Johnson continued: “We have determined that a court-supervised sale is the best path forward for our stakeholders. Our investor group recognizes the strength of our team, our surgeon relationships and our product portfolio, and we look forward to working with them throughout this process. The investor group shares a commitment to Exactech’s goals and is excited about further opportunities to drive innovation and growth.”
Source: Exactech
Exactech entered into a comprehensive restructuring support agreement and asset purchase agreement with a group of its existing investors, pursuant to which the investor group will serve as the "stalking horse" bidder to acquire substantially all of the company's assets. The investor group will support the company through the restructuring...
Exactech entered into a comprehensive restructuring support agreement and asset purchase agreement with a group of its existing investors, pursuant to which the investor group will serve as the “stalking horse” bidder to acquire substantially all of the company’s assets. The investor group will support the company through the restructuring process, including by providing approximately $85 million of additional financing to fund the company’s operations.
Throughout the restructuring process, the company will continue to operate as normal. The restructuring will relieve the company from non-operating legacy liabilities and facilitate an infusion of new capital.
The sale is being conducted pursuant to a voluntary reorganization process in front of the United States Bankruptcy Court for the District of Delaware and is subject to higher and better bids, court approval and other customary closing conditions.
The company has filed a number of “first-day” motions seeking court approval to maintain ordinary course operations throughout the sale process, including the continued payment of employee wages and benefits, as well as payments to sales representatives. In addition, the company will continue its research and development efforts during the process.
Exactech was taken private by TPG Capital in 2018. In 2023 Darin Johnson, then Exactech President, was promoted to Chief Executive Officer. Johnson had served as interim CEO since March 2023 and succeeded Jeffrey Binder, Chairman of Exactech’s Board of Directors.
“Our team has delivered strong performance and positive growth in 2024, and we are confident in the trajectory of our business,” said Darin Johnson, President and CEO. “However, despite the strength of the underlying business, we face unsustainable liabilities associated with knee and hip litigation related to the packaging recalls we voluntarily initiated between 2021 and 2022. We take our commitment to patient well-being very seriously and have provided substantial out-of-pocket patient reimbursements and surgeon support for related expenses. The process we are commencing today is intended to help us create a stronger foundation for long-term growth with an improved balance sheet and new capital as well as ensure that we can continue providing innovative, industry-leading implants for surgeons and their patients for years to come.”
Mr. Johnson continued: “We have determined that a court-supervised sale is the best path forward for our stakeholders. Our investor group recognizes the strength of our team, our surgeon relationships and our product portfolio, and we look forward to working with them throughout this process. The investor group shares a commitment to Exactech’s goals and is excited about further opportunities to drive innovation and growth.”
Source: Exactech
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
