Zimmer Holdings to Acquire Abbott Spine

Orthopedic implant maker Zimmer Holdings Inc. said it is buying a medical device subsidiary of Abbott Laboratories for roughly $360 million in cash.

Zimmer said it expects to fund the purchase of Austin, TX-based  Abbott Spine with cash on hand and by tapping existing credit lines.

The acquisition is expected to close in the fourth quarter, Zimmer said, adding that the boards of both companies approved the transaction, which is subject to regulatory approvals. Stockholder approval is not required.

Abbott Spine had 2007 revenue of $109 million.

Zimmer, of Warsaw, IN, expects the transaction to reduce earnings per share by roughly 3 cents in the fourth quarter, between 8 cents and 10 cents in 2009 and neutral to a slight reduction in 2010.

The estimates exclude certain one-time charges.

SOURCE: Boston.com