US-based orthopedic device manufacturer Zimmer Holdings has completed $14bn cash and stock acquisition of rival Biomet after winning anti-trust approval to divest certain assets.
Following the combination, the new entity will operate as Zimmer Biomet Holdings to offer comprehensive and diversified portfolio of musculoskeletal solutions. Zimmer expects to grow its spine and dental business by 100% after the deal.
The combined entity is expected to increase competitiveness for the company in core franchises and strengthen its presence in emerging markets, especially for sports medicine. Operational synergies of the firms are also likely to increase value for stockholders.
US Federal Trade Commission, which approved the deal, was cited by Reuters as saying that the assets sold by Zimmer Biomet will include certain knee implants, total elbow implants and bone cement.
Zimmer Biomet president and CEO David Dvorak said: "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.
"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."
Zimmer and Biomet had nearly $7.8bn in combined revenue in 2013.
To gain anti-trust clearance, Zimmer will sell its US rights for some knee implant products to UK-based Smith & Nephew, while Biomet will need to give up its US rights to California-based DJO Global.
The acquisition deal has already been approved by the European Union and Japanese authorities.
Image: Zimmer expects to grow its spine and dental business by 100% following Biomet acquisition. Photo: courtesy of adamr / FreeDigitalPhotos.net