By Michael Calia
Biomet Inc. swung to a profit in its fiscal fourth quarter as sales rose 7.7%.
The manufacturer of artificial knees and hips, among other orthopedic devices, agreed in April to be acquired by rival Zimmer Holdings Inc. for about $13.35 billion in cash and stock. That move effectively ended Biomet’s plan for an initial public offering earlier this year.
The company posted a profit of $66.7 million for the quarter ended May 31, compared with a loss of $221.2 million a year earlier. Excluding items, adjusted net income rose to $117.6 million from $98.7 million. Sales rose to $844.5 million.
Biomet has been subject to regulatory scrutiny lately, as well. The Federal Trade Commission last week requested more information about the proposed Zimmer deal, which is expected to close in the first quarter of next year. The Securities and Exchange Commission, meanwhile, subpoenaed Biomet for documents linked to “certain alleged improprieties” in the company’s Brazilian and Mexican operations. Biomet has said it is cooperating with authorities.
Write to Michael Calia at michael.calia@wsj.com and Josh Beckerman at josh.beckerman@wsj.com
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