Zimmer-Biomet Merger is a Done Deal

The wait is over. One of the largest deals consolidating two orthopedic powerhouses finally has come to a close.

Having received U.S. Federal Trade Commission clearance, Zimmer Holdings Inc. has completed the acquisition of Biomet in a cash and equity transaction currently valued at approximately $14 billion. Zimmer has changed its corporate name to Zimmer Biomet Holdings Inc. The company will trade on the New York Stock Exchange and the SIX Swiss Exchange under the ticker symbol ZBH beginning June 29. Both companies had been—and will continue to be—based in Warsaw, Ind.

“The coming together of Zimmer and Biomet is a momentous achievement.  We are excited to move forward as one company and to pursue new opportunities that benefit patients, healthcare professionals and employees around the globe,” said David Dvorak, president and CEO of Zimmer Biomet, formerly head of Zimmer.  “Over the past several months, our integration planning teams have been working to ensure that we capture the best of both companies and create a seamless and efficient transition.  I look forward to continuing to work closely with our employees for the benefit of all of our stakeholders.”

According to a release from the company, the scale of Zimmer Biomet will “provide for increased competitiveness in core franchises and a stronger presence in emerging markets.”

The company also unveiled its new logo, which was designed, according to the newly combined company’s leadership, to combine the visual components of both the legacy Zimmer and Biomet brands.

“Each of our companies has a proud heritage,” Dvorak added. “Just as the Zimmer Biomet name leverages the strong brand equity of both companies, the company logo combines Zimmer’s iconic symbol with elements of Biomet’s corporate identity.”

Additionally, the company unveiled its new tagline—”Your progress. Our promise.”

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

As of today’s merger closing, the size of the company’s board of directors has been increased to 12 members. 

Effective immediately, Michael W. Michelson, member, private equity, KKR & Co. L.P., and Jeffrey K. Rhodes, partner, TPG Capital, have been appointed to the board. Michelson and Rhodes previously served as members of the board of directors of Biomet, having represented the company’s private-equity investors. Michelson joined KKR in 1981 and has played a significant role investing in and developing the firms’ portfolio companies. Rhodes joined TPG in 2005 and is a leader of the firm’s investment activities in the healthcare services, pharmaceutical and medical device sectors. 

“Mike Michelson and Jeff Rhodes bring a wealth of healthcare industry experience to Zimmer Biomet’s board of directors,” said Larry Glasscock, chairman of the board.  “We welcome them to the Board and look forward to their contributions.”

Zimmer Biomet makes orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products.