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Zimmer completes acquisition of Biomet in $14 billion cash, equity deal
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Zimmer Holdings Inc. announced on June 24 it completed the acquisition of Biomet in a cash and equity transaction valued at approximately $14 billion.
In connection with the combination, which followed receipt of U.S. Federal Trade Commission clearance, Zimmer changed its corporate name to Zimmer Biomet Holdings Inc. and it will trade on the New York Stock Exchange and the SIX Swiss Exchange under the ticker symbol ZBH beginning June 29, 2015, according to a press release.
“The coming together of Zimmer and Biomet is a momentous achievement. We are excited to move forward as one company and to pursue new opportunities that benefit patients, health care professionals and employees around the globe,” David Dvorak, president and CEO of Zimmer Biomet, stated in the press release.
Zimmer Biomet announced that with the scale of Zimmer Biomet it will offer a comprehensive and diversified portfolio of musculoskeletal solutions and plans to develop and introduce cutting edge musculoskeletal products and services designed to achieve exceptional patient outcomes.
“Over the past several months, our integration planning teams have been working to ensure that we capture the best of both companies and create a seamless and efficient transition. I look forward to continuing to work closely with our employees for the benefit of all of our stakeholders,” Dvorak stated.
According to the release, in the first year following closing, the Zimmer Biomet transaction is expected to be double-digit accretive to the company’s adjusted earnings per share. The company also expects to achieve net annual synergies of approximately $350 million by the third year following closing, with approximately $135 million anticipated in the first 12 months.
With the announcement, Zimmer Biomet also unveiled a new logo and tagline.
Perspective
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Per Kjaersgaard-Andersen, MD
As expected in recent months, the process of merging Zimmer and Biomet has finally ended. We all anticipate learning more about the new Zimmer Biomet company and those areas within the field of orthopaedic devices they expect to impact. The new company will no doubt be a leading partner within orthopaedic industry, and with that comes some major responsibility in innovation, research and collaboration with orthopaedic surgeons. I know of several clinics that have used only Biomet implants for years and wish to continue with that, as they trust the products and have had great experiences and patient satisfaction with them. I personally hope these institutions can continue to use the “old” Biomet implants in the future.
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