Zimmer Holdings Inc. recently announced members of the new executive team that will lead the company with the completion of the Centerpulse acquisition, creating the world's No. 1 pure-play orthopedic company.

The Centerpulse acquisition was completed Thursday.

The new executive group and corporate structure are consistent with the long-standing company philosophies of choosing the best individual for positions regardless of prior affiliation; managing geographical territories with local nationals; operating with integrated business structures and multi-skilled general managers; and centralizing specialty skillsets with global standards of excellence, the company stated.

"The individuals selected to lead our new organization represent both the complementary nature and the enormous potential of the Zimmer-Centerpulse combination," said Ray Elliott, Zimmer chairman, president and CEO. "This team possesses deep orthopedic experience, global backgrounds and points of view, consistent business success in highly competitive environments and the passion and intensity required to execute the integration and to build on our outstanding growth record."

In addition to Elliott, the company's new executive committee includes:

• Dr. Cheryl Blanchard, vice president, corporate research and clinical affairs;

• Sheryl Conley, president, global products group;

• David Dvorak, executive vice president, corporate services and chief counsel;

• David Floyd, president, Zimmer USA;

• Richard Fritschi, president, Zimmer Europe and

Australasia;

• Sam Leno, executive vice president, corporate finance and operations and chief financial officer;

• Bruno Melzi, chairman, Zimmer International;

• Bruce Peterson, chairman, Zimmer Americas; and

• Terry Schlotterback, president, Zimmer SpineTech.

Another four to six individuals will join the executive committee to form a broader operating committee. Jim Crines, vice president, finance/controller, and Chris Jefferis, vice president, global integration, have been named to the operating committee, effective immediately.

Zimmer challenged as No. 1

According to Michael Lachman, an industry analyst with ThinkEquity Partners in San Francisco, Zimmer faces the challenge of integrating orthopedics products and employees for both Zimmer Holdings Inc. and Switzerland-based Centerpulse AG. Zimmer must succeed if it is to realize the deal's potential benefits, including greater market share in Europe and the addition of spinal products to its lineup, said Lachman.

Lachman told The Indianapolis Star for a story Friday that, "For you or I, there's not a huge difference whether you get a Zimmer implant versus one from Biomet or another company. All are good products with high success rates. But in the orthopedics business, sales reps have very strong relationships with surgeons, who train a certain way and use certain types of procedures.

"So if Zimmer doesn't handle this just right, they face the prospect of losing good people and their distribution networks. Minimizing these losses will be key for them.'

Zimmer made its unsolicited cash-and-stock offer in May, and the deal closed Thursday. Zimmer now claims a 28 percent share of the $14 billion global market for knee, hip and spinal implants.

Five companies account for more than 90 percent of that market. The other top rivals are Johnson & Johnson (24 percent), Stryker Corp. (21 percent), Biomet Inc. (12 percent) and British-based Smith & Nephew PLC (8 percent), according to ThinkEquity Partners.

With the Centerpulse acquisition, about one-fourth of the combined company's sales - about $2.2 billion based on 2002 figures for both companies - will now come from Europe, Zimmer officials said.

Plans to combine Zimmer's and Centerpulse's work forces have just begun taking shape. To aid the effort, Zimmer hired Boston Consulting Group, an international strategic management firm with headquarters in both Chicago and Zurich, Switzerland.

Brad Bishop, Zimmer spokesman, said, "There may be changes in the future, but right now, there are no formal plans for headcount changes, work force reduction or closing facilities at any particular location. It's too early to tell."

On the Net: Zimmer Holdings Inc.: www.zimmer.com [[In-content Ad]]