Zimmer Biomet Holdings Inc. (NYSE: ZBH) saw its shares slide in Tuesday’s session after the company announced the pricing of its previously disclosed underwritten secondary offering of 11,116,533 shares of its common stock by certain of its stockholders. The shares will be sold to the public at an initial price of $115.85 per share. At this price the offering is valued at roughly $1.29 billion.
Keep in mind that the company has a market cap of roughly $23 billion.
The selling stockholders consist of affiliates of KKR, Goldman Sachs and TPG, and at the same time these selling stockholders will receive all the proceeds of the offering. Neither Zimmer Biomet nor any of its directors, officers or other stockholders is selling any shares of common stock in the offering.
The closing of the offering is expected to occur on June 16, 2016, and is subject to the satisfaction of customary closing conditions.
For some background: this company was founded in 1927 and headquartered in Warsaw, Indiana. It is a global leader in musculoskeletal health care. Zimmer Biomet designs, manufactures and markets orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products.
Zimmer Biomet collaborates with health care professionals around the globe to advance the pace of innovation. Its products and solutions are designed to help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Together with health care professionals, Zimmer Biomet helps millions of people live better lives.
The company has operations in more than 25 countries around the world and sells products in more than 100 countries.
Shares of Zimmer Biomet were trading down 1.7% at $116.21 on Tuesday, with a consensus analyst price target of $127.52 and a 52-week trading range of $88.27 to $123.43.
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