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Biomet to merge with Interpore
The transaction is worth approximately $280 million and may close in the second quarter.
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Biomet Inc. announced that it has entered into a definitive agreement with Interpore International Inc. to acquire the Irvine, Calif.-based orthopedic company in a deal estimated to be worth $280 million.
According to press releases issued by both companies, Biomet would acquire all outstanding shares of common Interpore stock for $14.50 as part of the transaction, which is expected to close in the second quarter of 2004. The transaction, however, is dependent upon several factors, among them approval by Interpore stockholders and regulatory approval.
In connection with the transaction, certain Interpore stockholders have entered into agreements to vote their shares in favor of the transaction, it was announced. Biomet will pay the purchase price out of currently available cash and readily available short-term debt, according to the release.
No date had been set for the Interpore stockholders meeting when Orthopedics Today went to press.
“The Board of Directors is pleased with the terms of this transaction and believes it is in the best interests of Interpore stockholders. The Board is especially grateful to the excellent team of leaders and employees who have built this company,” Interpore Chief Executive Officer David Mercer said in a press release.
Biomet President and Chief Executive Officer Dane A. Miller, PhD, said in a release: “We are very excited about combining the Interpore organization with Biomet. Interpore’s strong franchise in the spinal market will expand Biomet’s presence in this clinically important and rapidly growing market segment.”
The transaction should give Biomet a more competitive edge in the worldwide spinal market, Miller said, noting that Interpore’s spinal products and its strong research and development capabilities made it particularly attractive. “We will command a solid position in the spinal marketplace with revenues of approximately $200 million and a domestic salesforce in excess of 400 individuals servicing our spinal surgeon and neurosurgeon customers.”
The broader product offering that Interpore will bring to Biomet and EBI in the spinal hardware and biologics areas “will better position us as we move forward,” Greg W. Sasso, Biomet vice president of corporate development and communications, told Orthopedics Today
That a large orthopedic firm such as Biomet is acquiring Interpore should come as no surprise to many in the field. “Interpore Cross has talked over the years many times to different companies about this,” an Interpore spokesman said.