Happy Trails to you until we meet again, Happy trails to you keep smiling onto then
Tuesday, April 3, 2012
It was reported today that Biomet Incorporated has made a Jeff Binding offer to acquire the worldwide trauma business from DePuy Orthopedics. Under exclusivity terms, Biomet has offered approximately $280 million in cash. This is actually quite entertaining. Considering that the only good move Gordon Lightweight ever made at DePuy was acquiring Hand Innovation, what does DePuy Trauma have? But then again what does it say about Biomet's current product portfolio? Biomet's claim to fame in Trauma was introducing the first Recon Nail. Outside of that technology, what have they ever developed in Trauma. Their Small External Fixator sucked, granted they had a decent Tibial Nail. The trays always looked second rate next to Synthes and the instruments looked like they were manufactured in someone's garage. So now they intend on increasing market share by acquiring another lame duck portfolio. Gordo must be laughing.......suckers! TSB is sure that DePuy was looking to unload their dirty little secret as quickly as possible. Considering that this is a cash offer, it is highly unlikely that the FTC will hold up this deal. Looking at the DePuy portfolio leaves much to the imagination. A troch nail, distal and proximal plating systems that remind one of Howmedica, the question to Binder is, are you that desperate? Spend some money. Biomet was known as a cheap paying company when Dane Miller ran the show, and it continues to crawl with Binder. Hire some exceptionally talented engineers and work with sales and things will happen. But considering that this company is managed by the Great Vampire Squid, the Blackstone Group and Kravis, Kohlberg, Roberts & Company would anyone expect otherwise? Schwartzmann should know that cheap is expensive. Traumatic to say the least.