Biomet Agrees to $10.9 Billion Buyout

Warsaw, IN-based Biomet has assented to a $10.9 billion offer in cash from a group of private investors that might include a founder of the company.

The consortium offered $44 per share, 27% more than Biomet’s closing price on April 3, the last trading day before the merger talk began. The offer is $1 per-share higher than what one analyst said would be justified recently, according to the Associated Press.

The orthopedic device manufacturer’s buyers include Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts and the Texas Pacific Group. Biomet founder Dane A. Miller, who resigned as CEO in March, also could join the deal, the company said.

Biomet’s board voted in favor of the deal, which is subject to shareholder approval and antitrust clearance. Biomet officials said in a statement they expect the acquisition to be completed by Oct. 31, 2007. The company’s stock would be delisted from the Nasdaq once the deal closed.

The announcement ended merger speculation brewing since Biomet disclosed in April that it had hired Morgan Stanley to explore “strategic alternatives.” The company recently had discussions with London, UK orthopedic rival Smith & Nephew.