Two of what have been called Warsaw's "big three" orthopedic companies announced today plans to become one in a more than $13 billion deal that would have Zimmer Holdings Inc. acquiring Biomet.
The boards of directors of the two companies have approved a definitive agreement for a cash and stock deal expected to be completed in the first quarter of 2015 valued at $13.35 billion, according to a news release this morning.
DePuy Synthes, part of Johnson & Johnson, is the other Warsaw-based company that has part of the "big three."
"The merger of Zimmer and Biomet will position the combined company as a leader in the $45 billion musculoskeletal industry and is aligned with Zimmer's strategic framework, which focuses on growth, operational excellence and prudent capital allocation," the news release said. "The combined company is expected to deliver attractive growth by offering a more comprehensive and scalable portfolio of solutions with enhanced cross-selling opportunities."
As a combined company, Zimmer and Biomet expect to be able to accelerate innovation and have a more diversified and predictable revenue mix consistent with a broader portfolio, the news release said.
"This combination is about achieving growth and cultivating best-in-class solutions," David Dvorak, Zimmer President and CEO, said in a statement. "We have a great deal of respect for what the management team and employees have accomplished at Biomet, and we are confident in their ability to be a very important part of the combined organization as we bring our two world-class companies together and cement Warsaw, Indiana as the musculoskeletal innovation capital of the world."
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