Pharma BD Deal Intelligence

Zimmer Holdings Inc. / Centerpulse AG

2003 · Acquisition/Merger · $3.2B · Complete

WRONG BY 32 POINTS

Made Zimmer the world's #1 pure-play orthopedics company, but the acquired Sulzer/Centerpulse implant litigation legacy and the follow-on Durom Cup crisis cost hundreds of millions and consumed a decade-plus of management attention.

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The coverage arc

May 20, 2003 Healio Orthopedics Bullish

Zimmer announced a $3.04 billion bid for Centerpulse, topping Smith & Nephew's earlier $2.35 billion offer and positioning Zimmer to acquire Europe's largest…

Sep 02, 2003 Centerpulse 6-K Exhibit 99.3 (shareholder approval media release) Bullish

Shares representing approximately 86.7% of Centerpulse's share capital have been tendered. Chairman/CEO Max Link: 'As a significant part of the leading…

Aug 01, 2015 Orthopedics This Week (BofA quote) Bullish

Bank of America's Bob Hopkins later credited Zimmer management with executing the Centerpulse merger 'flawlessly,' completing 3,000+ integration milestones…

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Counter-bid to Smith & Nephew's March 2003 $2.35B offer. Zimmer ultimately won at ~$3.2B; closed October 2003. Made Zimmer Europe's #1 orthopedic device co. Sources: EU Commission ip_03_763, Healio, Zimmer Holdings HBS case.

Did it work? Outcome assessment

Made Zimmer the world's #1 pure-play orthopedics company, but the acquired Sulzer/Centerpulse implant litigation legacy and the follow-on Durom Cup crisis cost hundreds of millions and consumed a decade-plus of management attention.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Zimmer Holdings Inc. / Centerpulse AG (this deal)2003$3.2B60
Zimmer Holdings Inc. / Biomet Inc.2014$13.3B63
Zimmer Holdings Inc. / Paragon 28, Inc.2025$1.1B
Eli Lilly and Company / Applied Molecular Evolution Inc.2003$400M88
Takeda Pharmaceutical Company Ltd. / Millennium Pharmaceuticals2003$8.8B82
Genzyme Corporation / SangStat Medical Corporation2003$600M78
Takeda Pharmaceutical Company Ltd. / Ariad Pharmaceuticals2003$5.2B77

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