Zimmer Biomet Holdings Inc. is Zimmer Biomet Holdings, Inc. now that it has acquired Biomet Inc., for about $14 billion in cash and stock, the company announced June 25. In addition, the firms signed off on the last product divestitures needed to close the deal.

The combined company will trade on the New York Stock Exchange and the SIX Swiss Exchange under the symbol ZBH, beginning June 29. [See Deal]

Zimmer agreed to buy Biomet in April 2014 for $10.35 billion in cash and $3 billion in stock to create the second-largest orthopedic competitor, behind Johnson & Johnson, with about $8 billion in combined annual sales and around 17 percent share of the $45 billion musculoskeletal healthcare market. (See Also see "New Ortho Juggernaut: Zimmer Acquires Biomet For $13.35 Billion" - Medtech Insight, 24 April, 2014..)

Zimmer Biomet expects to achieve net annual synergies of approximately $350 million by the third year following closing, including $135 million anticipated in the first 12 months.

Divestitures Finalized

To clear the deal through regulators, Zimmer and Biomet each had to sell off a few products.

Smith & Nephew PLCannounced June 24 that it had purchased the U.S. rights to Zimmer's Unicompartmental High Flex Knee system, including all existing inventory and certain intellectual property for the U.S. market. The transaction will close within three business days and terms of the deal were not disclosed. [See Deal]

On the same day, DJO Global said it had entered into an agreement to purchase the Biomet Cobalt bone cement, Optivac Cement Mixing Accessories and Discovery elbow system for the U.S. market. Discovery will be DJO’s first elbow technology. That deal will close within the next 10 days, DJO said. [See Deal]

To earn European anti-trust approval for the merger, Zimmer agreed in May to sell the European rights to its Unicompartmental High Flex Knee to Limacorporate SPA. [See Deal] Lima also bought the rights to Biomet's Discovery elbow system within the European Economic Area (EEA) and Switzerland markets and the rights to Biomet's Vanguard complete knee system for Denmark and Sweden. (See [A#2015800068].)

Zimmer, Biomet Sell Off Some U.S. Assets As They Finalize A $14 Bil. Merger

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