Smith & Nephew in Talks to Buy Biomet
After its president and chief executive Dane Miller left in March, Biomet appointed investment bank Morgan Stanley to research “strategic alternatives focused on enhancing shareholder value.” Confirming takeover rumors heard last month, Bloomberg and the New York Times report that Smith & Nephew is now in talks to acquire Biomet for more than $9 billion, while several large private equity groups are also said to be interested. The two companies have comparable market values but might be looking for critical mass in a sector faced with mounting pressure. Dhulsini de Zoysa, an analyst with Cowen & Co., was quoted by Bloomberg as saying: “Together the company would have a 19 percent share of the $21 billion worldwide orthopedic market. Size matters in orthopedics.”
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November 2, 2006 Related topics: Mergers & Acquisitions, Orthopedic