Zimmer closes $14B Biomet deal

Zimmer (NYSE:ZMH) yesterday closed its $14.0 billion acquisition of Biomet, 15 months after announcing its plan to merge with its cross-town orthopedics rival.

The Warsaw, Ind.-based company said yesterday that the U.S. Federal Trade Commission approved the deal after Zimmer found buyers for some of the U.S. assets it and Biomet owned: Smith & Nephew agreed to buy its High Flex unicompartmental knee implant and DJO Global subsidiary Encore Medical agreed to acquire Biomet’s Cobalt bone cement, Optivac cement mixing accessories and Discovery elbow system.

“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, healthcare professionals and employees around the globe,” president & CEO David Dvorak said in prepared remarks. “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.”

 

 

Zimmer said the deal is expected to double its adjusted earnings per share in the 1st year and generate net annual synergies of roughly $350 million by the 3rd year, including $135 million in the 1st year. Second-quarter adjusted EPS are now forecast to be $1.55 to $1.58, on sales growth of  1.0% to 1.5% excluding Biomet revenues.

Full-year adjusted EPS are slated to be $6.60 to $6.80 on sales growth of 1.5% to 2.0%, Zimmer Biomet said.

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