April 24, 2014 - 4:36 AM
WARSAW, Ind. - Orthopedic device maker Zimmer is buying privately-held Biomet in a cash-and-stock deal valued at about $13.35 billion. Zimmer says the deal will expand its product offerings and services.
Zimmer will pay $10.35 billion in cash and issue shares of its common stock valued at $3 billion to Biomet Inc.'s equity holders.
The companies say the transaction's total value includes the assumption of an unspecified amount of debt.
Zimmer stockholders are expected to own about 84 per cent of the combined company, with shareholders of Biomet targeted to own approximately 16 per cent.
Zimmer Holdings Inc. anticipates annual savings of about $270 million by the third year after the transaction's closing.
The combined company will be based in Warsaw, Ind. The deal is expected to close in 2015's first quarter.
Zimmer's stock surged more than 9 per cent in premarket trading.
News from © The Associated Press, 2014