Private equity group begins tender offer for Biomet

By Lisa Kerner

Charlotte, N.C., June 13 - LVB Acquisition, LLC and LVB Acquisition Merger Sub, Inc. began a $46-per-share tender offer for all of the outstanding common shares of Biomet, Inc. Following the offer's end at midnight ET on July 11, the investors will complete a second-step merger for any remaining shares at the $46-per-share price.

The transaction has an equity value of $11.4 billion.

A total of at least 75% of the outstanding shares must be tendered as a condition of the offer, according to a company news release.

LVB Acquisition and LVB Acquisition Merger Sub are affiliated with the Blackstone Group, Goldman, Sachs & Co., Kohlberg Kravis Roberts & Co. and TPG.

Dealer managers for the offer are Banc of America Securities LLC and Goldman, Sachs & Co. Innisfree M&A Inc. is the information agent.

On June 7, Biomet's board of directors unanimously recommended its shareholders approve an increased offer of $46 per share from the private equity consortium led by the Blackstone Group. Under the revised merger agreement, the company agreed not to pay its annual dividend and has cancelled the June 8 special meeting of shareholders. Morgan Stanley provided a fairness opinion on the revised agreement.

Biomet originally entered into an agreement with the group on Dec. 18 to be acquired for $44 per share in cash without interest. At that time, the $10.9 billion transaction was slated to close by Oct. 31, 2007.

Warsaw, Ind.-based Biomet designs and manufactures musculoskeletal medical products.

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