US-based musculoskeletal healthcare company Zimmer Biomet has unveiled plans to spin off its spine and dental businesses to create a new independent and publicly traded company.

The planned transaction will help improve the focus of both Zimmer Biomet and the newly formed company to meet the requirements of patients and customers.

In addition, the spin-off is expected to allow the company to hold an improved financial profile.

Upon completion of the spin-off, Zimmer Biomet is believed to become a major player in various segments within the orthopaedics market, including knees, hips, sports medicine, extremities and trauma (S.E.T.) and craniomaxillofacial and thoracic (CMFT).

The company’s portfolio consists of products such as ROSA knee for robotically-assisted surgeries, Persona primary, partial, and cementless and revision knee systems.

It also includes products such as mymobility with Apple Watch, OrthoIntel intelligence platform, Avenir Complete hip system, the G7 acetabular hip system, Comprehensive shoulder system, X Series power equipment and the Signature ONE surgical planner.

The new company, which will compete in the $21bn combined global spine and dental markets, will help leverage a portfolio of established brands and products.

Its spine portfolio covers all areas of spinal surgery and includes products such as  ROSA ONE spine, Mobi-C cervical disc and The Tether.

The dental segment consists of surgical, restorative and digital, and regenerative solutions. The products comprise T3 implant, Tapered Screw-Vent implant system, Trabecular Metal dental implant, BellaTek encode impression system and Puros allograft particulate.

Bryan Hanson will continue to manage Zimmer Biomet in the role of president and CEO, while the new CEO will lead the independent and publicly traded company.

Zimmer Biomet president and CEO Bryan Hanson said: “We believe NewCo will thrive as an independent company with prioritized capital allocation to pursue strategic growth opportunities and investment strategies in the large and growing spine and dental markets.”

J.P. Morgan is acting as lead financial advisor to Zimmer Biomet, while White & Case is serving as legal advisor to Zimmer Biomet. Guggenheim Securities is also acting as a financial advisor.

In December 2020, Zimmer Biomet completed the acquisition of Vance Street Capital portfolio company A&E Medical for $150m in cash.