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Biomet Inc. announced today it reached a principle agreement with Merck KGaA, Darmstadt, Germany, to acquire Merck's 50 percent interest in the Biomet-Merck Joint Venture for $300 million cash.
The joint venture was established in 1998 and created a market-leading European orthopedic company with annualized sales of approximately $330 million.
Biomet has adequate cash reserves to pay the purchase price, and it is anticipated the acquisition will be neutral to Biomet's fiscal year 2004 fourth-quarter earnings as well as the full fiscal year 2005. Thereafter, it gradually will build.
Dane Miller, Ph.D., Biomet's president and chief executive officer, said, "We very much appreciate the positive collaboration we have enjoyed with Merck KGaA in this joint venture during the past five years and we believe our partnership has been mutually beneficial. Biomet is looking forward to continuing to expand its European presence and aggressively pursue opportunities in the European marketplace after it assumes full ownership of the joint venture."
Closing of the acquisition is expected to occur during the first calendar quarter of 2004. Certain conditions, including completion of definitive documentation and clearance by applicable antitrust authorities, are included.
"We are pleased with Biomet's second quarter operating results, which continue to be led by strong growth in the company's reconstructive, spinal hardware and orthobiologic product lines," said Miller.
Biomet Inc. today reported record sales and earnings results for its second quarter ending Nov. 30. Net sales increased 14 percent, to $387,561,000, while operating income increased 16 percent, to $126,297,000. Net income increased 18 percent, to $82,692,000, and diluted earnings per share increased 19 percent, to 32 cents.
Biomet Inc. and its subsidiaries design, manufacture and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Headquartered in Warsaw, Biomet and its subsidiaries currently distribute products in more than 100 countries.
For more information, visit online at www.biomet.com
