September 12, 2014 by Brad Perriello
A 2nd suitor for orthopedic device maker Biomet ceded the field early to Zimmer, regulatory filings show, but Biomet held out for better terms from its cross-town rival.
In the early days of Zimmer‘s (NYSE:ZMH) courtship of Biomet, a 2nd suitor emerged who eventually ceded the field to concentrate on “internal projects,” according to a regulatory filing.
And Biomet played hard-to-get, pursuing plans for an IPO until very late in the game and holding out for a higher valuation from Zimmer, according to the filing, which offers a detailed look at exactly how the deal went down.
Biomet had been on Zimmer’s radar as part of its periodic due diligence, but as Biomet prepped the IPO in late 2013 Zimmer’s board authorized CEO David Dvorak to approach his counterpart at Biomet, Jeffrey Binder. Biomet’s board directed Binder to pursue the twin tracks of an IPO and a possible merger with the 2nd suitor, named only as “Company A” in the filing. Binder met with Company A’s CEO Dec. 23, 2013, to “discuss exploring potential collaborative opportunities,” according to the filing.
