The merger and acquisition trend in the device arena seems to be carrying over from 2011. This morning, Warsaw, IN-based orthopedic powerhouse Biomet announced that it has made a binding offer to acquire the worldwide trauma business of DePuy Orthopaedics for about $280 million in cash.
While the DePuy trauma deal isn't as big as one that Biomet was rumored to be in last year for a takeover of Smith & Nephew, it still adds to the company's portfolio. As Biomet President and CEO Jeffrey Binder explains in a statement, the buy will build the company's sports, extremities and trauma business.
The binding offer expires June 1, but can be extended under certain circumstances. The transaction is subject to the receipt of customary regulatory approvals and the completion of required employee consultation procedures.
The buyout news is a bright spot for the company, which recently entered a settlement with the Justice Department and Securities and Exchange Commission to settle a Foreign Corrupt Practices Act probe. As a result, the company will pay a $17.28 million criminal penalty plus $5.4 million in disgorgement of profits.
- check out the Biomet release