Biomet Expansion Plan to Create 150 Jobs

Biomet Inc. plans to invest $40.5 million in a Warsaw, Ind., expansion that would create 150 high-paying jobs by 2018.

The company’s annual payroll will increase by nearly $11.3 million after the additional workers are hired, The Journal Gazette reports. The jobs are projected to pay an average of $75,000 annually and will be added in stages, though paperwork prepared by the company did not specify the type of jobs being created.

Richard Fradette, Biomet’s global vice president of finance, presented the project on March 13 to the Kosciusko County Council, which unanimously voted to move the request for incentives to the next step in the process, according to the Kosciusko Economic Development Corp.

A public hearing will be held in April. The council will vote on the request sometime after the hearing, the Fort Wayne, Ind., newspaper claims.

Biomet officials said the project will move forward only if county and state tax breaks and other incentives are approved. Securing such approvals largely has been a formality for employers with large investment plans, especially for those looking to expand existing operations.

The Indiana Economic Development Corp. in August 2010 approved nearly $3 million in tax credits and training grants to help Biomet create 278 jobs at that time. Kosciusko County approved additional incentives on the $26 million investment.

Biomet’s new project calls for spending $40.5 million on capital improvements, including building renovations and 3-D printing and optical scanning technology.

The project also includes upgrades to Biomet’s Global Center of Excellence, the program that allows surgeons interested in introducing a new product, technology or technique to explore the idea with an expert.

George Roberson, president of the Kosciusko Economic Development Corp., is enthusiastic about the prospect of a significant investment by a major employer. “We’re pretty happy about it,” he told the Journal Gazette.

Biomet is one of three major orthopedic companies based in Warsaw. The trio had a $3.7 billion impact on the economy in 2009, according to study results released in 2011.

The expansion news occurred just one week after Biomet filed paperwork for an initial public stock offering.

In 2007, a private-equity consortium paid $11.4 billion for Biomet. Before that, company shares traded on the Nasdaq stock market.

LVB Acquisition Inc. will change its name to Biomet Group Inc. before the offering closes.

Some decisions have not yet been announced, including the IPO’s date, number of shares and price range.

Company officials plan to use IPO proceeds to pay down debt. As of Nov. 30, Biomet had $5.9 billion in long-term debt and $176 million in cash and cash equivalents, according to the filing.

The company’s fiscal year ends May 31.