Originally Published MX
Originally Published MX September/October 2003
BUSINESS NEWSZimmer Prevails in Bid to Acquire Centerpulse
One of the most closely watched and widely publicized acquisition battles in the recent history of the medical device industry is finally over. And the winner is--Zimmer.
Zimmer Holdings Inc. (Warsaw, IN) and Smith & Nephew plc (London) had been locked in a feverish battle to acquire Centerpulse (Zurich, Switzerland), Europe's largest orthopedics manufacturer. The deal was essentially sealed when Smith & Nephew announced that it was unwilling to increase its offering bid.
Commenting on the company's decision, CEO Sir Christopher O'Donnell said, "Smith & Nephew is a disciplined buyer. The basic premise of every acquisition we undertake is that it must create value for our shareholders. Our review of the circumstances did not identify enough value for a revised offer."
The purchase price was $3.2 billion in cash and stock. By contrast, the Smith & Nephew offer was valued at $2.6 billion.
The Centerpulse acquisition will enable Zimmer to bolster its presence in the spinal products market, in which it has been weak.