Zimmer to Buy Biomet for $13.35 Billion

U.S.-based Zimmer Holdings has said it will buy rival orthopedic products maker Biomet for more than $13 billion, the latest deal in a wave of consolidations in the healthcare industry.

It is also the latest successful exit for private equity. In 2007, Biomet was acquired for $11.3 billion by Blackstone, Goldman Sachs's buyout group, Kohlberg Kravis Roberts and TPG Capital.

The deal is expected to take Zimmer from the fourth-largest seller of orthopedics products to no. 2, behind Johnson & Johnson.

Zimmer, which expects to close the deal in the first quarter of 2015, said the combination would double the size of its spine and dental business, broaden its portfolio of products to treat bones, knees and hips, and give it an entry into the smaller but growing field of sports medicine.

The deal will also significantly add to the company's earnings in the first year and is expected to lead to net annual cost savings of about $270 million by the third year after closing.