Orthopedic products maker Zimmer Holdings on Thursday announced it will acquire Biomet Inc. in a deal valued at $13.35 billion, including assumption of debt, the companies said.
The proposed acquisition follows a flurry of billion-dollar deals by pharmaceutical and medical device companies.
This week Swiss multinational company Novartis AG, maker of Excedrin, announced a restructuring of its businesses with GlaxoSmithKline that included the sale of GSK's oncology products to Novartis for $14.5 billion. Activist investor Bill Ackman and Canadian firm Valeant Pharmaceuticals International Inc. on Tuesday unveiled details of their $45-billion bid for Irvine pharmaceutical company Allergan Inc., which makes the popular Botox wrinkle treatment.
News of the the acquisition boosted Zimmer Holdings' shares. The company's stock was up $13.06, or 14.28%, to $104.51 on Thursday morning.
"The transaction positions the combined company as a leader in the musculoskeletal industry with a broad portfolio of products, technologies and services, enabling us to help shape how solutions are developed and delivered," said David Dvorak, Zimmer's chief executive, in a statement. "We believe that current demographic and macroeconomic trends affecting the healthcare industry will reward companies that successfully partner with other key stakeholders to improve patient care in a cost-effective manner."