Zimmer Biomet to acquire Colorado company for $1.2 billion
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WARSAW, Ind. - Warsaw-based Zimmer Biomet is looking to acquire a medical device company headquartered in Englewood, Colorado. The proposed deal for Paragon 28, which specializes in foot and ankle orthopedics, is valued at $1.2 billion.
Zimmer Biomet CEO Ivan Tornos said in a news release that the addition of Paragon 28 would position the company well in a high-growth specialized segment of musculoskeletal care.
“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.
Paragon 28 was founded in 2010 and has developed a variety of products and surgical offerings related to foot and ankle issues, including fracture and trauma, deformity correction, and joint replacement.
Zimmer Biomet said Paragon 28 reported more than $250 million in revenue in 2024, representing a more than 18% increase over the previous year.
“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,” Paragon 28 CEO Albert DaCosta said.
A spokesperson for Zimmer Biomet declined to say how many employees Paragon 28 has or if the deal would have any negative impact on jobs.
“For now, it is business as usual—there are no changes in the way that either company operates,” the spokesperson said in an email to Inside INdiana Business. “We remain committed to ensuring that our customers’ and partners’ needs are met and that we deliver the highest level of service and quality of care.”
Zimmer Biomet said it plans to fund the acquisition through a combination of cash on hand and other available debt financing sources.
The boards of directors for both Zimmer Biomet and Paragon 28 have unanimously approved the acquisition. The deal still requires regulatory approval and shareholder approval, and is expected to close in the first half of this year.
Company officials plan to discuss more about the acquisition during Zimmer Biomet’s fourth-quarter earnings call on Feb. 6.
Shares of Zimmer Biomet stock were down 0.72% to $111.05 per share at end of trading Wednesday.
Zimmer Biomet is the eight-largest public company in Indiana with $7.4 billion in revenue reported in 2023, according to IBJ research. The company has approximately 18,000 employees across its entire footprint.