plans to spend $13.35 billion in cash and stock to acquire Biomet
, a musculoskeletal and biotechnology products maker, Zimmer announced Thursday morning.
The deal, which creates a company with a combined $7.8 billion in 2013 sales, is expected to close in the first quarter of 2015, Zimmer said in a news release.
"positions the combined company as a leader in the musculoskeletal industry with a broad portfolio of products, technologies and services,” said David Dvorak, Zimmer president and CEO. “We believe that current demographic and macroeconomic trends affecting the healthcare industry will reward companies that successfully partner with other key stakeholders to improve patient care in a cost-effective manner.”
Describing the scope of business for the combined companies, Zimmer said in its release that “the combination will enhance enterprise diversification with broader franchises in the knee, hip, surgical, spine and dental categories, as well as in the faster-growing sports medicine, extremities and trauma categories.”
Dvorak will be president and CEO of the combined company and the company will be headquartered in Warsaw, Ind.
Zimmer is paying $10.35 billion in cash for the acquisition as well as issuing Biomet's shareholders roughly $3 billion in Zimmer stock.
Biomet last year acquired Lanx
, a small spine device manufacturer, for $150 million.Follow John N. Frank on Twitter: @MHJFrank