MiMedx Group Inc. recently announced it has completed the acquisition of Stability Biologics, a provider of human tissue products to surgeons and facilities. Under the deal, Stability Biologics will operate as a wholly owned subsidiary of MiMedx.
The transaction was originally announced on Jan. 10, 2016, according to a press release from MiMedx. MiMedx confirmed the closing consideration for the transaction was $10 million paid at closing, comprised of 60% cash and 40% stock. MiMedx noted the transaction also included assumed debt with future contingent consideration to be paid through a 2-year earn out arrangement based on the 2016 and 2017 performance of Stability Biologics.
Stability Biologics has developed bioactive bone graft products and tissue allografts as part of its business platform. It most recently introduced Physio, a bone grafting material comprised of 100% bone tissue with no added carrier, according to the release.
MiMedx announced expectations for the transaction to be accretive to full-year 2016-adjusted earnings per share and its conservative projection for the 2016 Stability Biologics revenues from its processed tissue and bone products sales and distribution to be at least $15 million, according to the release.