WARSAW, Ind., Tue Apr 3, 2012 – Biomet Inc. has offered to buy the trauma products business of DePuy Orthopaedics Inc., a Johnson & Johnson unit, for $280 million in cash.
J&J said in a statement on Tuesday the binding offer includes the purchase of DePuy’s internal and external fixation products used in the treatment of bone fractures, as well as the organization supporting the business. The sale is subject to regulatory approvals and is expected to close in the second quarter.
The announcement comes as J&J seeks to finalize its planned $21.3 billion acquisition of Swiss medical device maker Synthes Inc.
J&J said it expects the deal with Biomet will satisfy any remaining concerns regulators might have over its dominance in the trauma field.
“We believe this divestiture will satisfy all regulatory concerns relating to the pending purchase of Synthes by Johnson & Johnson, but we will not know with certainty until the regulatory processes in the EU and US are completed,” J&J said in a statement. “We continue to make progress in our work with antitrust authorities on the Synthes transaction.”
Biomet, which makes products such as orthopedic joint replacement devices, bone cements, bone and spine healing products, said the transaction will provide the company with a much stronger presence in the global trauma market and greatly expands its sports, extremities and trauma business, which is a “meaningful” growth driver for the company.