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.
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.