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Zimmer Holdings to combine with Biomet in $13.35B deal

Medical device maker Zimmer Holdings said it would buy orthopedic products company Biomet in a deal valued at about $13.35 billion to broaden its portfolio of products that treat bone and joint-related disorders.

Zimmer will pay $10.35 billion in cash and issue $3 billion in shares to Biomet shareholders.

Biomet was taken private for $11.4 billion in 2007 by a private equity consortium including affiliates of Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts and TPG.

The cash portion of the deal will be funded by cash on hand and $3 billion from a senior unsecured term loan and an issue of senior notes.

Zimmer was advised by Credit Suisse Securities and White & Case LLP on the deal, which is expected to close in the first quarter of 2015.

Biomet was advised by BofA Merrill Lynch, Goldman Sachs, Cleary Gottlieb Steen & Hamilton LLP and Weil, Gotshal & Manges LLP.

Zimmer said the deal is expected to add to adjusted earnings per share in the first year.

Zimmer also reported adjusted quarterly earnings of $1.50 per share, just above Wall Street estimates of $1.47 per share.

—By Reuters

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