Zimmer Holdings Inc said on Thursday it would purchase rival orthopedic products maker Biomet Inc for more than $13 billion, the latest deal in a wave of consolidations in the healthcare industry.Investors gave a resounding thumbs up to the announcement, sending Zimmer shares up more than 18 percent on expectations the larger scale will help it navigate stiffer pricing pressure on medical devices from hospitals and insurers. The deal is expected to take Zimmer from the fourth-largest seller of orthopedics products to No. 2, behind Johnson & Johnson.Zimmer, which expects to close the deal in the first quarter of 2015, said the combination would double the size of its spine and dental business, broaden its portfolio of products to treat bones, knees and hips, and give it an entry into the smaller but growing field of sports medicine."Biomet is a perfect fit for us," Zimmer Chief Executive David Dvorak told analysts and investors on a conference call.
Johnson & Johnson is a holding company. The Company is engaged in the research and development, manufacture and sale of a broad range of products in the health care field. Shares of JNJ fell by 0.36% or $-0.36/share to $99.86. In the past year, the shares have traded as low as $82.12 and as high as $100.75. On average, 8780810 shares of JNJ exchange hands on a given day and today's volume is recorded at 3330925.
Zimmer Holdings, Inc. (Zimmer) designs, develops, manufactures and markets orthopaedic reconstructive, spinal and trauma devices, biologics, dental implants and related surgical products. Shares of ZMH traded higher by 11.86% or $10.85/share to $102.30. In the past year, the shares have traded as low as $74.55 and as high as $98.95. On average, 1187780 shares of ZMH exchange hands on a given day and today's volume is recorded at 9005537.
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