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Update 4/22/25: This transaction is complete. Paragon 28 shares (FNA) ceased trading on the New York Stock Exchange prior to the opening of the market on April 21, 2025 and will be delisted. The company became a wholly-owned subsidiary of Zimmer Biomet, and according to analyst notes, Zimmer Biomet plans to retain FNA management, including CEO Albert DaCosta as well as FNA’s Chief Commercial Officer and other commercial leadership.
Zimmer Biomet entered into a definitive agreement to acquire all outstanding shares of common stock of Paragon 28 for $13.00/share in cash, for an equity value of approximately $1.1 billion and an enterprise value of approximately $1.2 billion. The transaction closed within the first half of 2025.
Paragon 28 offers a suite of surgical and product systems spanning all major foot and ankle segments, including fracture and trauma, deformity correction and joint replacement.
The proposed transaction is expected to immediately accelerate Zimmer Biomet’s revenue growth. Paragon 28 announced 2024 net revenue in a range of $255.9 to $256.2 million, representing 18.2% to 18.4% reported growth over 2023.
Valuable assets come at a premium in Medtech, and that is especially true in orthopedics. However, this seems like a great move for Zimmer Biomet. The company’s foot and ankle business accounted for just 4% of its S.E.T. (primarily sports medicine, extremities and trauma) category at the end of 2023, or about $70 million.
The S.E.T. business faced myriad challenges in recent years, from volume-based procurement in China to supply problems. Given the segments gathered within that category, it should be a strong growth driver for Zimmer Biomet.
The addition of Paragon 28 supercharges the foot and ankle portion of S.E.T. and provides a stable platform in a high-growth space. Paragon 28’s holistic approach to foot and ankle helped it weather the market’s ups and downs while remaining one of the best growth stories in orthopedics.
But Paragon 28’s obsession with foot and ankle is a large part of what makes it so successful. Can Zimmer Biomet avoid diluting or blunting that strength during the integration? If so, this acquisition can be a major coup for one of the largest players in orthopedics.
“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.”
“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,” said Albert DaCosta, Chairman and CEO of Paragon 28. “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.”
Source: Zimmer Biomet
Update 4/22/25: This transaction is complete. Paragon 28 shares (FNA) ceased trading on the New York Stock Exchange prior to the opening of the market on April 21, 2025 and will be delisted. The company became a wholly-owned subsidiary of Zimmer Biomet, and according to analyst notes, Zimmer Biomet plans to retain FNA management,...
Update 4/22/25: This transaction is complete. Paragon 28 shares (FNA) ceased trading on the New York Stock Exchange prior to the opening of the market on April 21, 2025 and will be delisted. The company became a wholly-owned subsidiary of Zimmer Biomet, and according to analyst notes, Zimmer Biomet plans to retain FNA management, including CEO Albert DaCosta as well as FNA’s Chief Commercial Officer and other commercial leadership.
Zimmer Biomet entered into a definitive agreement to acquire all outstanding shares of common stock of Paragon 28 for $13.00/share in cash, for an equity value of approximately $1.1 billion and an enterprise value of approximately $1.2 billion. The transaction closed within the first half of 2025.
Paragon 28 offers a suite of surgical and product systems spanning all major foot and ankle segments, including fracture and trauma, deformity correction and joint replacement.
The proposed transaction is expected to immediately accelerate Zimmer Biomet’s revenue growth. Paragon 28 announced 2024 net revenue in a range of $255.9 to $256.2 million, representing 18.2% to 18.4% reported growth over 2023.
Valuable assets come at a premium in Medtech, and that is especially true in orthopedics. However, this seems like a great move for Zimmer Biomet. The company’s foot and ankle business accounted for just 4% of its S.E.T. (primarily sports medicine, extremities and trauma) category at the end of 2023, or about $70 million.
The S.E.T. business faced myriad challenges in recent years, from volume-based procurement in China to supply problems. Given the segments gathered within that category, it should be a strong growth driver for Zimmer Biomet.
The addition of Paragon 28 supercharges the foot and ankle portion of S.E.T. and provides a stable platform in a high-growth space. Paragon 28’s holistic approach to foot and ankle helped it weather the market’s ups and downs while remaining one of the best growth stories in orthopedics.
But Paragon 28’s obsession with foot and ankle is a large part of what makes it so successful. Can Zimmer Biomet avoid diluting or blunting that strength during the integration? If so, this acquisition can be a major coup for one of the largest players in orthopedics.
“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.”
“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,” said Albert DaCosta, Chairman and CEO of Paragon 28. “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.”
Source: Zimmer Biomet
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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.
