Zimmer Biomet Backs FY16 View; Agrees To Buy LDR Holding In $1 Bln Cash Deal

(RTTNews) - Zimmer Biomet Holdings, Inc. (ZBH), a musculoskeletal healthcare company, Tuesday said its Board has approved a definitive agreement to commence a tender offer to acquire LDR Holding Corp. (LDRH), a medical device company focused on spine disorders, for $37.00 per share in cash. This implies a transaction value of approximately $1.0 billion.

The transaction is structured as an all-cash tender offer for all outstanding shares of LDR common stock, followed by a merger.

The deal is subject to customary closing conditions and is expected to close in the third quarter of 2016.

The transaction is expected to be neutral to adjusted earnings per share in 2017 and accretive thereafter.

Zimmer Biomet said the addition of LDR will bolster its presence in the global Spine market and provide the Company with an immediate and a leading position in the fast growing cervical disc replacement or CDR and MIS segments.

Zimmer Biomet also expects the transaction to accelerate the future growth of its overall business.

With respect to 2016, the Company reiterated its previously provided revenue guidance, an increase of 2.0% to 3.0% as compared to adjusted pro forma full year 2015 on a constant currency basis.

The Company said it will update its revenue guidance to reflect this transaction at or about the time of closing. Zimmer Biomet is also reiterating its 2016 adjusted earnings per share guidance of $7.85 - $8.00.

Upon consummation of the transaction, LDR will be combined with Zimmer Biomet's Spine & CMF category and will be led by Adam Johnson, Zimmer Biomet Group President, Spine, CMF and Thoracic, and Dental.