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Zimmer Biomet Holdings, Inc. (NYSE: ZBH) has decided to spinoff its spine and dental businesses to form ZimVie Inc. (NASDAQ: ZIMV) and has recently filed a Form 10 with the SEC. ZBH will be distributing one share of ZIMV for every 10 shares of ZBH owned to current ZBH shareholders. 80.3% of the ZimVie’s shares will be distributed to shareholders with Zimmer Biomet retaining 19.7% of the stock. The transaction is expected to be completed on March 1st, 2022. Zimmer Biomet is currently trading at a market cap of ~$24.5B and therefore giving ZimVie an implied valuation of $2.45B.
Recent Insider Buying
Large Micro Cap Purchases
Source: OpenInsider.com
Top News of the Week
"U.S. Inflation Accelerates to 7.5%, a 40-Year High” - By Gwynn Guilford of WSJ
“U.S. inflation accelerated to a 7.5% annual rate in January, reaching a four-decade high as strong consumer demand and pandemic-related supply constraints kept pushing up prices.”
“Tech Talent Shortage Is Helping Drive M&A Deals” - By Angus Loten of WSJ
“While M&A has traditionally been deployed as a growth or competitive strategy, Mr. Herbert said, ‘segments of companies now see it through the lens of talent acquisition.’”
“Inflation’s on fire, and the Fed’s poised to act. Here’s how markets and the economy have reacted to the first hike in a cycle.” - By Steve Goldstein of MarketWatch
“Small caps typically suffer ahead of the first hike — Wang says that’s because they’re assets that are particularly sensitive to liquidity — but rebound and stabilize afterwards. Value also tends to outperform growth after the first hikes.”
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Colfax Corp (NYSE: CFX) - Spinoff
No Update
Activision Blizzard (NASDAQ: ATVI) - Risk Arbitrage
The spread between the buyout price and ATVI’s current trading price is now ~16%.
Warner Bros. Discovery (NASDAQ: WBD) - Spinoff Merger
This week the merger between Discovery and WarnerMedia has cleared antitrust review by the Department of Justice and is now one step closer to finalizing.
*See links above for the situation summary from prior editions
See you next week!
- Dark Side of the Street