Zimmer to Acquire Abbott Spine for $360 million
BY LAUREN UZDIENSKI, SEPTEMBER 4, 2008
Zimmer announced plans to acquire Abbott Spine for approximately $360 million in cash (a 3.3x revenue multiple.) Zimmer says the acquisition will add innovative products to their portfolio and augment the company's R&D capabilities. Zimmer's stock was flat in midday trading.
Among Abbott's key products are the InCompass Pedicle Screw System; the Pathfinder Minimally Invasive Pedicle Screw system; the Wallis Interspinous Stabilizer System (not available in the U.S.); the Ant-Cer Dynamic Cervical Plate; and the Universal Clamp.
Zimmer will fund the purchase price from cash on hand and by borrowing under existing credit facilities. The company says they expect to incur $40 to $50 million in restructuring and integration costs, primarily due to the process of integrating global sales networks.
The deal should close in 4Q:08.
