Exactech begins bankruptcy restructuring

Exactech It entered court-supervised Chapter 11 bankruptcy restructuring by initiating an asset sale backed by existing investors as a “chasing horse” bidder to satisfy legal obligations.

The restructuring includes an $85 million funding commitment to maintain operations throughout the process, allowing Exactech to continue its orthopedic device operations and partnerships with surgeons.

Exactech said operations will remain unaffected during the Chapter 11 bankruptcy process, ensuring surgeons, patients and employees will not experience any disruption. The restructuring is designed to help the company with non-operating liabilities related to knee and hip lawsuits arising from recalls between 2021 and 2022, according to CEO and President Darin Johnson.

“Our team has delivered strong performance and positive growth in 2024, and we are confident in the trajectory of our business,” Johnson said in a news release. “However, despite the strength of the underlying business, we face unsustainable liabilities related to serious litigation related to packaging recalls that we voluntarily initiated between 2021 and 2022. We take our commitment to patient health very seriously and have provided significant support.” Out-of-pocket patient reimbursements and surgeon support for related expenses. The process we are launching today aims to help us build a stronger foundation for long-term growth with an improved balance sheet and new capital, as well as ensuring we can continue to provide innovative, industry-leading implants to surgeons and their patients for years to come. to come.”

The sale, pending approval by the United States Bankruptcy Court for the District of Delaware, is open to competing offers. Exactech made requests to ensure business continuity, including employee salary payments, benefits and ongoing R&D efforts. The restructuring is supported by a consortium of private equity firms with extensive expertise in the medical device industry.

“We have determined that a court-supervised sale is the best path for our stakeholders. Our investor group recognizes the strength of our team, surgeon relationships, and product portfolio, and we look forward to working with them throughout this process. The investor group shares a commitment to Exactech’s goals and will drive innovation and growth excited about more opportunities,” Johnson said.