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Zimmer Holdings to acquire Abbott Spine



By AP
04 September 2008 @ 04:42 pm ET

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

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Zimmer said it expects to fund the purchase of 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 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.

Zimmer expects to incur $40 million to $50 million in restructuring and integration costs in connection with the transaction.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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