Zimmer’s acquisition of Biomet has finally gone through, following the receipt of U.S. Federal Trade Commission clearance.
It was in April 2014 that Zimmer Holdings announced it was to acquire Biomet, as we reported at the time. The intervening period has seen divestiture of elements of each company’s portfolio in order to satisfy the competition rules. The European Commission declared itself satisfied back in March, and now the US FTC has given its own blessing to the a cash and equity transaction currently valued at approximately $14.0 billion.
Zimmer has changed its corporate name to Zimmer Biomet Holdings, Inc. and has a swanky new logo to reflect the change.
The transaction is expected to be double-digit accretive to the Company’s adjusted earnings per share in the first year following today’s closing. Zimmer Biomet 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. The Company anticipates leveraging its scalable platforms and achieving cross-selling opportunities.
The resultant company aims to be a leading innovator in the $45 billion musculoskeletal healthcare market, with its significant portfolio of musculoskeletal solutions. The scale of the newly combined entity will provide for increased competitiveness in core franchises and a stronger presence in emerging markets.
“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,” said David Dvorak, President and CEO of Zimmer Biomet. “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.”
Mr. Dvorak continued, “Each of our companies has a proud heritage. Just as the Zimmer Biomet name leverages the strong brand equity of both companies, the company logo combines Zimmer’s iconic symbol with elements of Biomet’s corporate identity.”
Source: PR Newswire