Last month saw action on three multi-billion-dollar deals in med-tech, one closing two more moving forward.
In the orthopedics sector, Biomet (Warsaw, Indiana) completed its $11.4 billion merger with LVB Acquisition Merger Sub, a subsidiary of LVB Acquisition, indirectly owned by partnerships directly or indirectly advised or managed by the Blackstone Group, Goldman, Sachs & Co., Kohlberg Kravis Roberts & Co. and TPG. Biomet first agreed to the buyout last December.
And Kyphon (Sunnyvale, California) will hold a special meeting Oct. 16 for shareholders to vote on its proposed $3.9 billion merger with a subsidiary of Medtronic (Minneapolis). The other deal moving forward is the proposed purchase of eye care giant Bausch & Lomb (B&L; Rochester, New York) by affiliates of Warburg Pincus for $3.67 billion.
Kyphon in July entered into an agreement for Medtronic to acquire all of its outstanding common stock for $71 a share in cash. Completion of the transaction, anticipated for 1Q08, remains subject to other customary conditions.
Medtronic's acquisition of Kyphon significantly expands its footprint in its spinal repair offerings. Kyphon develops medical devices designed to restore and preserve spinal function and diagnose the source of low back pain using minimally invasive technologies, with its flagship products used in balloon kyphoplasty for the treatment.
Warburg Picus won a bidding war for B&L after Advanced Medical Optics (AMO; Santa Ana, California), another major eye care player, withdrew its offer. AMO had made a bid of $4.2 billion for B&L, topping the $65-a-share offer by Warbug Pincus, but in July AMO's third largest shareholder, ValueAct Capital, had opposed the takeover move.