Exactech Acquired for $737 Million

On December 4, 2017, Exactech, Inc. (NASDAQ: EXAC) announced an amended merger agreement with TPG Capital resulting in a $737 million transaction valuation.  This represents an increase of nearly $112 million over the $625 million Exactech valuation previously announced on October 23rd.

The company’s common stock outstanding will be converted into the right to receive $49.25 per share in cash immediately prior to the effective time of the merger.  This reflects an increase of approximately 17.3% above the $42.00 per share merger consideration previously agreed to by Exactech and TPG Capital.

Exactech’s board of directors has approved the amended merger agreement and recommended to its shareholders that they vote to approve the TPG merger.  The merger is expected to close within the first three months of 2018.

Exactech’s founders, CEO, and certain other management shareholders have agreed to exchange a portion of their shares in the transaction, representing approximately 18.8% of Exactech’s outstanding common stock, for new equity securities in the post-closing ownership of the company.

One of the most successful companies in the Greater Gainesville region, Exactech is a leading advanced manufacturer producing orthopedic implant devices and surgical instrumentation for extremities and large joints.  It will be a privately held company headquartered in Gainesville after completion of the transaction.

Exactech was founded 33 years ago by orthopedic surgeon Dr. Bill Petty, his wife Betty, and biochemical engineer Gary Miller, PhD.  The purpose was to improve the quality of care for patients suffering from joint injury or disease.  

Over 700 individuals – including engineers, researchers, manufacturing professionals, and sales representatives – are employed by the company.  Its products are marketed in the United States and distributed to more than 35 countries around the world.

The TPG Capital merger is a strong vote of confidence in the visionary leadership of CEO David Petty and the talented management team.  Known for its admirable corporate culture and dedicated employees, Exactech is a model company that has delivered value for its shareholders.

The acquirer, TPG Capital, is the global private equity platform of alternative asset firm TPG.  With more than $73 billion of assets under management and offices on several continents, TPG has investment platforms cutting across a swath of asset classes such as private equity, growth venture, real estate, credit, and public equity.

By Kamal I. Latham

Exactech respectfully declined to comment for this article as the merger has not yet closed.

Related posts