Zimmer to Layoff Staff, Downsize Dental Biz After Biomet Merger

Zimmer will reorganize its dental business, closing its dental headquarters, following its pending $13 billion merger with Biomet, according to internal documents.

Qmed Staff

Zimmer will shutter its Carlsbad, CA-based dental facility after it merges with Biomet, according to internal documents obtained by FierceMedicalDevices. An undisclosed number of employees would lose their jobs. The plant will be closed within 12 months while the company will begin the consolidation of its operations to Biomet's dental headquarters in Palm Beach Gardens, FL.

In an email to employees, David Josza, vice president of North America sales of Biomet's 3i division said the companies "have made tough decisions to reduce costs and eliminate redundancies throughout Zimmer Dental and Biomet 3i post-closing as we focus on building more organizational momentum."

A separate email from Christine Lucas, vice president of global supply chain of Biomet's 3i division stated that the manufacturing operations of the plant in Carlsbad, CA would be eventually shifted to other Zimmer Biomet sites and to contract manufacturers while distribution would be centralized in the facility based in Palm Beach Gardens, FL.

Both emails stated that the two companies were still in the process of ironing out their plans for the integration.

Last year, Zimmer's president and CEO David Dvorak had said that the company will avoid layoffs as much as possible. As the leader of the merged companies, he specifically stated that he would work to preserve sales positions at both companies.

In related news, Zimmer is divesting a handful of businesses related to its unicompartmental High-Flex knee implant, and Biomet's Discovery elbow implant and Cobalt bone cements to help pave the way for FTC to bless the merger.

Last year, it offered to sell a handful of knee and shoulder units to satisfy European regulators, which would go on to sanction the merger in March 2015.

Learn more about medical device business at MD&M East in New York City, June 9-11, 2015.

Brian Buntz is the editor-in-chief of MPMN and Qmed. Follow him on Twitter at @brian_buntz.

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