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ZIMMER HOLDINGS INC. Warsaw, Indiana; Medical Device Maker Beefs Up With Buyout.(THE NEW AMERICA)

Investor's Business Daily

| November 04, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: AMY REEVES

Zimmer Holdings Inc. is just a baby as an independent company, but it's growing up fast.

The surgical implant maker, spun off from Bristol-Myers Squibb Co. two years ago, just closed a deal that made it the biggest player in its space.

It spent an undisclosed amount to buy Swiss counterpart Centerpulse AG, which took in more than $800 million in sales last year.

"Internally, we've defined this deal as the perfect fit," said Zimmer Chief Executive Ray Elliott. "There's a lack of overlap almost anywhere you want to look."

Zimmer's sales have mostly come from the U.S. and Japan, with just 12% coming from Europe. Centerpulse's strength lies in northern Europe.

The deal also fills out Zimmer's product lines. It was already a top player in artificial hips and knees, but some rivals were developing more lucrative products. One of them, Stryker Corp., has seen recent success with its ceramic hips -- a device Zimmer didn't have until it bought Centerpulse.

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