Biomet Inc., a maker of orthopedic and musculoskeletal products, on Thursday accepted a takeover bid of $11.4 billion, which was made by a group of private equity firms, after rejecting the proposed $10.9 billion deal for the company was regarded as too low.
The tender offer, which worth $46 a share, the private equity consortium, which includes affiliates of the Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG, will commence on or before June 14 to get all of Biomet's outstanding shares.
The second step of the merger will include the converting of any remaining Biomet common shares into the right to receive the same price per share as it was paid in the tender offer.
Niles L Noblitt, the chairman said:"ÂWe believe the proposed price for the transaction is fair to Biomet's shareholders. We also believe that the investor group's tender offer will deliver superior value to Biomet's shareholders in a more efficient and more immediate fashion than the process provided by the original merger agreement. Moreover, this revised offer provides greater certainty and visibility to completion of the transaction"Â.
Morgan Stanley will act as financial adviser of Biomet.
HISTORY
On November 30, 1977, Dane A. Miller, Ph.D., Niles L. Noblitt, Jerry L. Ferguson and M. Ray Harroff took a bold step and created Biomet, Inc., a fledgling orthopedic company in an industry dominated by divisions of large pharmaceutical companies. The four young entrepreneurs aimed to provide patients with the highest quality and most clinically proven products in the marketplace. In the first year, Biomet recorded sales of $17,000 - and a net loss of $63,000. Nevertheless, the founders remained focused on their vision for the future of orthopedics. Today, Biomet forges ahead as a leader in the musculoskeletal marketplace. In addition to a clear vision, the road to Biomet's industry position has evolved through a number of strategic partnerships and acquisitions. Biomet issued public stock in 1982, 1983, and again in 1986.
Biomet employs over 5,000 team members across 18 manufacturing facilities throughout the world. Headquartered in Warsaw, Indiana, Biomet has manufacturing and/or office facilities in over 50 locations worldwide. The Company currently distributes its products in more than 100 countries throughout the world with over 2,000 sales representatives servicing Biomet's customers.- Alla Harutyunyan for HULIQ.COM
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