Here are six things to know:
1. More than a year after announcing plans to merge, the Zimmer-Biomet combination is complete today. Zimmer also sold the Zimmer Unicompartmental High Flex Knee system to Smith & Nephew; the sale was announced today and set for completion within the next three days.
2. Zimmer acquired Biomet for $14 billion in a cash and equity transaction. The combined companies’ corporate name will be Zimmer Biomet Holdings and the company will begin trading on the New York Stock Exchange and SIX Swiss Exchange under the ZBH ticker symbol beginning June 29.
3. After the combination, Zimmer Biomet is the leading innovator in the $45 billion musculoskeletal healthcare market. Zimmer Biomet’s scale will increase competitiveness in core franchises and strengthen its presence in emerging markets.
4. Zimmer Biomet expects to reach net annual synergies of around $350 million by the third year after the combination; $135 million is expected in the first 12 months. The transaction is expected to be double-digit accretive to the Company’s adjusted earnings per share in the first year.
5. Excluding Biomet acquired revenue, the second quarter constant currency revenue growth is expected to reach 1 percent to 1.5 percent. The full year 2015 revenue is expected to increase 1.5 percent to 2 percent compared to pro forma 2014 revenues. The company will provide additional financial information on the transaction and expectations for the balance of fiscal 2015 in the second quarter earnings conference call on July 30.
6. Zimmer Biomet’s board is now 12 members, with Michael W. Michelson and Jeffrey K. Rhodes appointed to the board. Both were members of the Biomet board of directors.
“The coming together of Zimmer and Biomet is a momentous achievement,” said Zimmer Biomet President and CEO David Dvorak. “We are excited to move forward as one company and to pursue new opportunities that benefit patients, healthcare professionals and employees around the globe.”
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