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Biomet to be taken private in $10.9 billion deal

Biomet Inc., a maker of hip and knee replacement products, said Monday that it agreed to be acquired by a private equity consortium for about $10.9 billion.
/ Source: The Associated Press

Biomet Inc., a maker of hip and knee replacement products, said Monday that it agreed to be acquired by a private equity consortium for about $10.9 billion.

The consortium includes Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts and TPG. The offer will give shareholders $44 per share, a 27 percent premium to Biomet's April 3 price, the trading day before the market started considering the company a takeover target. Biomet started looking for a buyer with the help of Morgan Stanley on April 6.

The board of Biomet approved the transaction, which is subject to shareholder approval and antitrust clearance.

Biomet said the transaction is expected to be complete by Oct. 31, and the company's stock will be delisted from the Nasdaq.

Last week, UBS analyst Kristen M. Stewart wrote in a report that a private equity buyout wouldn't be justified at more than $43 per share.

Biomet shares closed at $42 per share Friday on the Nasdaq.