FTC Wants More Info on Zimmer-Biomet Deal

Zimmer Holdings Inc. and Biomet Inc., both based in Warsaw, Ind., have each received a second request for additional information from the U.S. Federal Trade Commission (FTC) in connection with Zimmer’s previously proposed acquisition of Biomet.

The second request was issued under the notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). The effect of the second request is to extend the waiting period imposed by the HSR Act until 30 days after Zimmer and Biomet have substantially complied with the request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC.

This means that FTC officials believe there may be significant competition implications to the deal.

Zimmer and Biomet have said they will continue to work closely with the FTC as it conducts its review of the proposed transaction, which remains subject to the expiration or termination of the waiting period under the HSR Act, antitrust clearance in certain foreign jurisdictions as well as other customary closing conditions.

The transaction is expected to close in the first quarter of 2015.

The deal has been approved by the boards of both companies. If successful, Biomet will become a public company again. Biomet was in the process of filing an initial public offering when the $13.4 billion acquisition was announced in April. The IPO was, in part, to pay off debt incurred from the 2007 buyout.

Biomet was acquired by a consortium of major private equity firms in 2007. The Blackstone Group LP, Goldman Sachs & Co., KKR & Co. LP and TPG Capital LP bought the company for $11.4 billion.

Zimmer designs, develops, manufactures and markets orthopedic reconstructive, spinal and trauma
Biomet’s product portfolio includes hip and knee reconstructive products; sports medicine, extremities and trauma products; spine, bone healing and microfixation products; dental reconstructive products; and cement, biologics and other products.