In mid-December I wrote that there was at least some chance that ortho giant Zimmer (NYSE: ZMH ) would make a bid for Biomet
and become the dominant company in hip and knee implants, as well as
leverage stronger share in areas like extremities, dental, trauma, and
spine. That speculation has come to pass, as Zimmer has announced a
$13.35 billion bid for Biomet. Assuming the deal passes regulatory
scrunity, Zimmer is likely to see meaningful cost synergy, but there are
risks involved in devoting such a large amount of capital to a market
with some growth challenges.
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$13 Billion Bold Play: Zimmer Holdings, Inc's Purchase of Biomet
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