Fairness opinionsMedical Devices and Supplies2025

ZimVie acquired by ARCHIMED: fairness opinion by Centerview Partners

Announced July 21, 2025 · One-step merger · All cash · DEFM14A filed September 2, 2025
Medical Devices and Supplies Dental Equipment / Devices
Enterprise value
$730M
EV / LTM EBITDA
10.8x
EBITDA $67.5M · 15% margin
EV / LTM revenue
1.61x
revenue $453M
DCF discount rate
11.5%–13.5%
Perpetuity growth

Deal terms

ConsiderationAll cash
Price per share$19.00
Premium
Premium basisclosing price of $8.44 on July 18, 2025 (last trading day before announcement)
StructureOne-step merger
Termination fee$20.3M (3.0% of equity)
Reverse termination fee$40.5M
Go-shop40 days · $10.1M reduced fee
Outside date

Implied value per share by method vs. $19.00 offer

Selected companies — EV / 2025E Adj. EBITDA $14.00 – $18.75
Precedent transactions — TV / LTM Adj. EBITDA $17.00 – $21.25
Discounted cash flow $15.75 – $22.00
Precedent Premia Paid Analysis (reference only) $10.50 – $14.00
Historical Stock Trading Price Analysis (reference only) $8.28 – $21.95
Analyst Price Target Analysis (reference only) $9.00 – $16.00

Ranges as disclosed in the banker’s summary of analyses; the red line marks the per-share consideration.

Opinion of Centerview Partners to the target board

Delivered July 20, 2025 · Fee $20.0M ($12.5M contingent on closing), $7.5M on delivery of the opinion

Discounted cash flow assumptions

Discount rate11.5%–13.5%
BasisCenterview's analysis of the Company's weighted average cost of capital
Terminal valuePerpetuity growth
Perpetuity growth2.5%–3.5%
Exit multiple
Projection periodJuly 1, 2025 - December 31, 2030
Projections usedCompany management Financial Forecasts (the 'Forecasts'), risk-adjusted after-tax unlevered free cash flows
Implied value per share$15.75–$22.00

Discounted to present value as of June 30, 2025 using mid-year convention; added cash of $70 million and $68 million book value of promissory note from spine business sale, subtracted debt of $221 million.

Selected public companies (5)

Align Technology, Inc. · DENTSPLY SIRONA Inc. · Envista Holdings Corporation · Henry Schein, Inc. · Straumann Group

MultiplePeer lowPeer medianPeer highRange appliedImplied per share
EV / 2025E Adj. EBITDA6.8x11.0x19.6x 7.0x–9.0x $14.00–$18.75

Selected precedent transactions (5)

DateTargetAcquirerMultiple
2024-12Patterson Companies, Inc.Patient Square Capital9.9x TV/LTM Adj. EBITDA
2024-08VantiveThe Carlyle Group Inc.8.8x TV/LTM Segment Operating Income (Baxter kidney care segment)
2021-09KaVo Treatment Unit & Instrument Business of Envista Holdings CorporationPlanmeca Oy6.4x TV/LTM Adj. EBITDA
2018-04Analogic CorporationAltaris Capital Partners, LLC11.3x TV/LTM Adj. EBITDA
2018-02Zest Dental SolutionsBC Partners11.2x TV/LTM Adj. EBITDA
MultipleLowMedianHighRange appliedImplied per share
TV / LTM Adj. EBITDA6.4x9.9x11.3x 9.0x–11.0x $17.00–$21.25

Other analyses

AnalysisSummaryImplied per share
Precedent Premia Paid Analysis (reference only)Premia in transactions since 2020 with transaction value between $500 million and $1.5 billion; applied premium range of 25% to 65% (25th to 75th percentile) to the $8.44 closing price on July 18, 2025.$10.50–$14.00
Historical Stock Trading Price Analysis (reference only)52-week period ended July 18, 2025 low and high closing prices.$8.28–$21.95
Analyst Price Target Analysis (reference only)Price targets in four publicly available Wall Street research analyst reports.$9.00–$16.00
Additional precedent multiples (reference only)TV/LTM Adj. EBITDA multiples implied by KKR & Co. Inc.'s January 2025 strategic investment in Henry Schein, Inc. and Peak Rock Capital's April 2024 acquisition of HuFriedyGroup ranged from 8.1x to 11.2x.

Aggregate fee of $20 million; $7.5 million payable upon rendering of opinion and $12.5 million contingent on consummation. Centerview received between $5 and $10 million from the Company in the prior two years, including for the 2024 sale of the spine business to H.I.G. Capital.

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Management projections

Projection yearYear 1Year 2Year 3Year 4Year 5CAGR
Revenue$478M$497M$518M$541M$566M4.3%
Revenue growth5.6%4.0%4.2%4.4%4.6%
EBITDA$86.0M$98.0M$107M$115M$123M9.4%
EBITDA growth27.4%14.0%9.2%7.5%7.0%
EBITDA margin18%20%21%21%22%
Implied EV / EBITDA8.5x7.4x6.8x6.3x5.9x

Year-1 growth is against LTM at announcement ($453M revenue, $67.5M EBITDA); later years are year over year.

Management prepared nonpublic unaudited Financial Forecasts for fiscal years 2025 through 2030, first reviewed by the Board on April 3, 2025 and the only forecast approved for Centerview's use. Revenue grows from $460 million in 2025E to $566 million in 2030E; Adjusted EBITDA from $72 million in 2025E to $123 million in 2030E; Unlevered Free Cash Flow from $4 million in 2025E to $68 million in 2030E. The forecasts assume the Company continues as a standalone company and exclude merger impacts.

Process notes

Single financial advisor (Centerview) to the full Board; no special committee. Deal included a 40-day post-signing go-shop period (expired August 29, 2025, with no go-shop extension period), so the reduced go-shop termination fee of $10,125,785 (1.50% of fully diluted equity value) no longer applies; the standard Company termination fee is $20,251,575 (3.00%) and the Parent reverse termination fee is $40,503,150 (approximately 6.00%), guaranteed by Med Platform II S.L.P. subject to an aggregate cap of $48,003,150. Negotiation history shows extensive back-and-forth on go-shop and fee percentages; the $19.00 price was reached after ARCHIMED's March 28 and May 9 offers and the Company's May 12 counteroffer. Centerview's DCF and precedent transaction ranges bracketed the $19.00 price while the trading-multiple range fell below it.

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