Boston, MA 04\/24\/2014 (wallstreetpr) –\u00a0Zimmer Holdings, Inc. (NYSE:ZMH)<\/b> continues to surge in the market by highs of 14.48% after announcing it is buying privately owned Biomet for $13.35 Billion. This is part of the company\u2019s strategy to expand its product offerings and services. A surge in the market is a demonstration that investors and analysts are buoyed by the deal.<\/p>\n
Terms of the deal<\/b><\/p>\n
Zimmer Holdings, Inc. (NYSE:ZMH) \u00a0will have to pay $10.35 billion in cash as part of the transaction while also issuing $3 billion worth of its common stock to Biomet\u2019s equity holders. Total transaction fees is inclusive of unspecified amount of Biomet\u2019s debt. The acquisition is expected to position Zimmer as a leader in musculoskeletal industry with a wide range of products, technologies and services<\/p>\n
\u00a0The deal will also enable Biomet to compete as a stronger entity in the medical device space with Zimmer shareholders expected to own 84% of the new entity. Biomet equity and shareholders will own the remaining 16%. The combined company will have its headquarters based in Warsaw while operating under a consolidated name.<\/p>\n
\u00a0Zimmer Positioned to Compete with Johnson & Johnson<\/b><\/p>\n
\u00a0Zimmer Chief Executive Officer David Dvorak will take over as the president and CEO of the combined company with two Biomet\u2019s Principal stockholders taking their seat in the new company\u2019s board. Zimmer will fund the transaction with exiting cash in hand as well as proceeds from its recently committed $3 billion worth of unsecured term loan.<\/p>\n
\u00a0The deal is expected to close in the first quarter of 2015 with Zimmer Holdings, Inc. (NYSE:ZMH) expecting annual savings of about $270 million by the third year from when the transaction closes. The acquisition marks the end of the prepared initial public offering for Biomet by its parent Biomet Group Inc. Biomet wanted to go public as a way of sourcing a total of $100 million to pay off its Debt.<\/p>\n
\u00a0The acquisition will enable Zimmer to take on, Johnson & Johnson in the lucrative $45 billion market. Biomet is set to bolster Zimmer\u2019s range of products while also expanding its geographic reach. Zimmer\u2019s announcement follows a number of deals among major drug makers in the industry. Novartis recently announced it had agreed to buy GlaxoSmithKline Plc (GSK)\u2019s for $16 billion<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 04\/24\/2014 (wallstreetpr) –\u00a0Zimmer Holdings, Inc. (NYSE:ZMH) continues to surge in the market by highs of 14.48% after announcing it is buying privately owned […]<\/p>\n","protected":false},"author":32,"featured_media":20243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3762,3760],"stock_ticker":[],"class_list":["post-20234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysezmh","tag-zimmer-holdings-inc-nysezmh","entry"],"acf":[],"yoast_head":"\n