#1 - The big picture numbers of the deal
Both boards have approved the definitive merger agreement. Closing is expected in early 2015. Total price is $13.35B. Zimmer will pay $10.35B in cash and $3B in Z stock (represents about 17% of outstanding shares). At closing, Zimmer's shareholders will own 84% of the merged company and Biomet's shareholders will own 16%. Zimmer will take on all of Biomet's debt. Zimmer's market cap is about $17B ($100 per share X 169M shares). Biomet is obviously worth $13B, so this is as much a merger as an acquisition.
#2 - Meet the new #2
The combined Zimmer-Biomet will be the #2 player in Orthopedics behind DePuy-Synthes. However, Zimmer-Biomet will be the #1 total joint company. Today, Zimmer is the #3 player and Biomet is #6.
Total projected annual revenues in 2015:
DePuy-Synthes $9.9B
Zimmer-Biomet $8.2B
Stryker $6.2B
Medtronic Spine $3.4B
Smith and Nephew $3.2B
#3 - Cultures are similar because of history and location
The Orthopedic industry, as we know it today, was created in Warsaw in 1895 by a salesman, Revra DePuy, who started making fiber splints that were better than wooden ones. Revra called his company DePuy Manufacturing. J.O....
