Biomet Private Equity Owners Exit Zimmer Biomet

Some of the private equity owners that took Biomet, Inc. private in 2007 and then sold Biomet to Zimmer Holdings, Inc. in 2014, are preparing to sell their stake in the new Zimmer Biomet Holdings, Inc.

On August 10, 2016, Zimmer Biomet announced the pricing of a secondary offering of 7.4 million shares of its common stock “by certain of its stockholders.”

Those “certain stockholders” are Kohlberg Kravis Roberts & Co. (KKR) and TPG Capital. They, along with the Blackstone Group L.P. and Goldman Sachs & Co., were the private equity firms rounded up by Biomet, Inc. founder Dane Miller, Ph.D. to take back the company he and partners founded in 1977.

The shares are being sold to the public at an initial price of $129.75 per share. TPG Capital and KKR will receive all of the proceeds of the offering. Neither Zimmer Biomet nor any of its directors, officers or other stockholders is selling any shares of common stock in the offering. The closing of the offering is expected to occur on August 12, 2016, subject to the satisfaction of customary closing conditions.

KKR is a global alternative asset manager. The core of the firm’s franchise, according to the company, is sponsoring and managing funds that make private equity investments in North America, Europe, and Asia. Throughout its history, KKR says it has brought a long-term investment approach to portfolio companies, focusing on working in partnership with management teams and investing for future competitiveness and growth. Additional funds that KKR sponsors include KKR Private Equity Investors, L.P. (Euronext Amsterdam), a permanent capital fund that invests in KKR-identified investments; and two credit strategy funds, KKR Financial and the KKR Strategic Capital Funds, which make investments in debt transactions. KKR has offices in New York, Menlo Park, San Francisco, London, Paris, Hong Kong, and Tokyo.

TPG is a private investment partnership that was founded in 1992 and currently has more than $30 billion of assets under management. With offices in San Francisco, London, Hong Kong, New York, Minneapolis, Fort Worth, Melbourne, Menlo Park, Moscow, Mumbai, Shanghai, Singapore and Tokyo, TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG’s investments span a variety of industries including healthcare, retail/consumer, airlines, media and communications, industrials, technology and financial services.