Smith & Nephew Says It's Talking About Biomet 'Combination'
July 28, 2016 at 4:25 p.m.
Smith & Nephew today confirmed it has held "very preliminary" talks about a possible combination with Biomet Inc.
Local Biomet officials could not be reached this morning for comment.
In their response to press speculation, Smith & Nephew issued the following statement: "Smith & Nephew is constantly looking at opportunities to maximize shareholder value, including looking at potential strategic acquisitions. In response to recent press speculation, the company can confirm that it has held very preliminary talks with the U.S. medical devices company Biomet Inc. No agreement has been reached, and there can be no assurance that any transaction will be proposed or completed. Smith & Nephew does not intend to make any further comment or respond to any inquiries, unless or until there is further information to report."
According to the Associated Press, analysts said a combination would most likely take the form of an offer by Smith & Nephew for Biomet, although both Biomet and Smith & Nephew are considered equals and currently have a market capitalization of $9.2 billion each.
Talk of the possible sale or merger of Biomet surfaced following the March 27 announcement that Dane Miller, former president and chief executive officer, was retiring. On April 6, Biomet confirmed Morgan Stanley & Co. Inc. had been hired to assist Biomet in "exploring strategic alternatives focused on enhancing shareholder value."
On Sept. 20, Biomet announced record first-quarter results.
Such a deal would move Smith & Nephew into the top-tier medical devices companies, competing against Zimmer Holdings Inc., DePuy, a Johnson & Johnson Co., and Stryker Corp.
Smith & Nephew's last acquisition attempt in 2003 failed when it was trumped by Zimmer in the takeover battle for Swiss medical devices company Centerpulse.
At press time, Biomet stock was at $38.28, up 0.88, and Smith & Nephew was at $47.04, down 1.33, on the New York Stock Exchange. [[In-content Ad]]
Smith & Nephew today confirmed it has held "very preliminary" talks about a possible combination with Biomet Inc.
Local Biomet officials could not be reached this morning for comment.
In their response to press speculation, Smith & Nephew issued the following statement: "Smith & Nephew is constantly looking at opportunities to maximize shareholder value, including looking at potential strategic acquisitions. In response to recent press speculation, the company can confirm that it has held very preliminary talks with the U.S. medical devices company Biomet Inc. No agreement has been reached, and there can be no assurance that any transaction will be proposed or completed. Smith & Nephew does not intend to make any further comment or respond to any inquiries, unless or until there is further information to report."
According to the Associated Press, analysts said a combination would most likely take the form of an offer by Smith & Nephew for Biomet, although both Biomet and Smith & Nephew are considered equals and currently have a market capitalization of $9.2 billion each.
Talk of the possible sale or merger of Biomet surfaced following the March 27 announcement that Dane Miller, former president and chief executive officer, was retiring. On April 6, Biomet confirmed Morgan Stanley & Co. Inc. had been hired to assist Biomet in "exploring strategic alternatives focused on enhancing shareholder value."
On Sept. 20, Biomet announced record first-quarter results.
Such a deal would move Smith & Nephew into the top-tier medical devices companies, competing against Zimmer Holdings Inc., DePuy, a Johnson & Johnson Co., and Stryker Corp.
Smith & Nephew's last acquisition attempt in 2003 failed when it was trumped by Zimmer in the takeover battle for Swiss medical devices company Centerpulse.
At press time, Biomet stock was at $38.28, up 0.88, and Smith & Nephew was at $47.04, down 1.33, on the New York Stock Exchange. [[In-content Ad]]