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Smith & Nephew in early discussions over acquiring Biomet
No agreement has been reached and there is no assurance a transaction will actually take place, company officials said.
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Smith & Nephew has held preliminary talks with Biomet Inc. regarding the potential acquisition of Biomet, the companies announced.
"In response to recent press speculation, [Smith & Nephew] can confirm that it has held very preliminary talks with the U.S. medical devices company, Biomet Inc. No agreement has been reached, and there can be no assurance that any transaction will be proposed or completed. Smith & Nephew does not intend to make any further comment, or respond to any enquiries, unless or until there is further information to report," company officials said in the release.
According to a report by the New York Times, Smith & Nephew is currently discussing acquiring Biomet for more than $9 billion, but analysts expect the company may fetch over $10 billion as other private equity firms have also expressed interest.
Should a transaction occur, the combined companies would challenge De Puy, a Johnson & Johnson Company, for honor as the largest medical device maker specializing in orthopedics.
Biomet had announced on April 6 that it had retained Morgan Stanley & Co. Inc. to assist it in exploring "strategic alternatives focused on enhancing shareholder value." But officials for the company noted that no decisions had been made and that there was no assurance their exploration would result in any specific action, according to the April 6 press release.
In an announcement today, Biomet officials stated that the company "continues to assess all of its strategic alternatives.
"While Biomet has had a preliminary discussion with Smith & Nephew plc. ... Biomet has not made a determination that it is in Biomet's best interests for it to engage in a transaction with any third party," they said in the release.