WARSAW, Ind. (WANE) Two Warsaw-based companies with products sold across the world are merging in a $13 billion deal.
Zimmer Holdings, Inc. and Biomet, Inc. are combining in a deal worth $13.35 billion, the companies announced on Thursday. The combined company will be headquartered in Warsaw with regional offices around the world. David Dvorak, the CEO of Zimmer, will stay on as President and CEO of the combined company.
Company presidents said the move will position them to compete as an even stronger leader in the orthopaedics industry.
Both companies make medical devices, such as orthopaedic reconstructive, spinal and trauma devices and those used by musculoskeletal medical specialists. According to a spokesperson for Zimmer Holdings, the work of the two businesses is complementary in nature and will add diversity and scale across various geographies and product categories.
“This really cements Warsaw as the muscoloskeletal capital of the world and we see opportunity in the area to improve processes, improve the quality, make it even more efficient,” said Jim Gill, Director of Public Relations for Zimmer Holdings.
“This is a milestone combination that brings together two highly complementary organizations and is consistent with our mission to lead the industry in delivering value to healthcare providers, their patients and stockholders,” said David Dvorak, Zimmer President and CEO. “The transaction positions the combined company as a leader in the musculoskeletal industry with a broad portfolio of products, technologies and services, enabling us to help shape how solutions are developed and delivered. 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. Together with Biomet we will expand the scope of our innovation programs and will enhance our efforts to provide integrated services and comprehensive solutions that address the needs of our customers. At the same time, we believe that this merger will further support our long-term growth and stockholder value creation strategies.”
According to the press release on the deal, the Boards of Directors for each company approved an agreement under which Zimmer will acquire Biomet in a cash and stock transaction valued at approximately $13.35 billion, including the assumption of net debt. The deal is expected to close in the first quarter of 2015.
Jeffrey R. Binder, Biomet’s President and Chief Executive Officer, said, “The combination with Zimmer will prepare us to compete as a stronger entity in the medical device industry of the future. Our combined scale will extend the reach and influence with which we pursue our common passion: delivering products and services that benefit our customers and the patients we ultimately serve. Biomet and Zimmer share a 36-year history of mutual respect. Both companies are deeply rooted in the communities in which we operate and believe that we can only be successful in business if we are successful in helping healthcare providers improve the lives of patients. We are equally committed to delivering quality products and outstanding clinical results and to legal and ethical behavior in the markets where we do business. And as companies focused almost exclusively in the musculoskeletal industry, we are passionate about orthopaedics and the related medical technology markets that we serve.”
NewsChannel 15 spoke to a former employee of Zimmer Holdings.
“It is in the orthopaedic capital of the world, I’m just glad it’s staying here,” said Marty Sellers.
It’s unknown exactly where the combined company will be located in Warsaw or what it means yet for jobs.
About Zimmer Holdings, Inc.
Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer designs, develops, manufactures and markets orthopaedic reconstructive, spinal and trauma devices, dental implants, and related surgical products. Zimmer has operations in more than 25 countries around the world and sells products in more than 100 countries. Zimmer’s 2013 sales were approximately $4.6 billion. Zimmer is supported by the efforts of more than 9,000 employees worldwide.
Biomet, Inc. and its subsidiaries design, manufacture and market surgical and non-surgical products used primarily by orthopedic surgeons and other musculoskeletal medical specialists. Biomet’s product portfolio includes hip and knee reconstructive products; sports medicine, extremities and trauma products; spine, bone healing and microfixation products; dental reconstructive products; and cement, biologics and other products. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in approximately 90 countries.