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Biomet completes Interpore Cross acquisition
The transaction closed June 18 and has a total equity value of approximately $280 million.
| “Interpore’s position in the spinal segment
will expand Biomet’s presence in this clinically important and rapidly
growing market segment.” — Dane A. Miller |
Biomet has completed its acquisition of Interpore Cross International Inc., and Interpore shareholders approved the merger at a special meeting on June 18. The transaction closed immediately afterwards, according to press releases issued by both companies.
Based on the announced terms of the merger agreement, Interpore Cross International stockholders will receive $14.50 in cash in exchange for each share of common stock they own, representing a total equity value of approximately $280 million.
Orthopedics Today confirmed that the transaction was financed by available cash and short-term debt, as was originally announced in March.
Officers of both companies they were pleased with the transaction and what it means for the future of the companies and their employees.
“We can now focus on the integration plan with Biomet. Our employees are excited about being part of the Biomet world class orthopedic team,” David C. Mercer, chief executive officer of Interpore Cross, said in a press release.
Biomet President and Chief Executive Officer Dane A. Miller, PhD, said in the press release, “We are pleased that the transaction has been successfully completed and we look forward to Interpore joining the Biomet team.
“Interpore’s position in the spinal segment will expand Biomet’s presence in this clinically important and rapidly growing market segment. We will command a solid No. 4 domestic position with over 400 sales representatives servicing our spinal and neurosurgeon customers in the United States.”
Biomet’s world headquarters are in Warsaw, Ind. Interpore Cross is based in Irvine, Calif.
Product development time frames, project priorities and integration of the two companies’ sales forces were being worked on in the days immediately after the transaction closed, according to Greg W. Sasso, Biomet vice president, corporate development and communications. He assured orthopedic surgeons that they should now expect to have access to all Interpore products through Biomet.
Total disc development on track
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“One of the reasons why we bought Interpore was due to their product breadth, especially in the spinal hardware areas. Certainly it’s our intention to continue to offer all of the products, all of the platforms that Interpore currently has,” Sasso told Orthopedics Today.
A few areas in which both companies are involved were extremely complementary, he said. Biomet’s EBI division and Interpore have disc replacement products in development, both of which will go through their clinical trial phases based on current post-merger plans.
Another common focus is orthobiologics. Interpore’s orthobiologics line was indeed a factor in the acquisition, Sasso said. “Our intention is to keep all the products that we have at both companies and leverage them through a larger sales force.”
Whether Interpore will be completely absorbed into Biomet or become a Biomet company, like EBI, has yet to be determined.