BIOMET SEEKING $1 BILLION IN IPO? (Orthopedics This Week)
According to the Wall Street Journal, Biomet, Inc. is in talks with bankers about an initial public offering (IPO).
The Journal reported on February 12, 2014 that the company is in discussion with banks about returning to public ownership after being taken private for $11.3 billion in 2007 by four Wall Street buyout firms. The buyout came after company founder, Dane Miller, Ph.D. was removed as the company CEO. He returned with the bankers to retake the public company by buying out the public shareholders. According to securities filings, $5.9 billion of debt still remains on the company’s balance sheet.
According to the Journal, investors have been fond of new listings from private-equity backed companies that use IPO proceeds to pay down debt. By reducing their debt, such companies can quickly show improved profitability even without sales increasing.
Kohlberg Kravis Roberts (KKR), one of the Wall Street firms that reportedly put in around $1.3 billion to the private deal had its investment in Biomet marked at $.80 on the dollar as of September 30, 2013, the last time the firm gave detailed information on its investment.
F...
