Zimmer Plans to Buy Centerpulse

Zimmer says it will offer to acquire the Swiss medical device maker for $3.22 billion in cash and stock.
By Nat Worden ,

Zimmer Holdings

(ZMH)

said Tuesday that it will offer to acquire

Centerpulse

, a Swiss medical device maker, for $3.22 billion in cash and stock.

Zimmer, a maker of orthopedic implants and trauma products, topped a competing bid from Britain's

Smith & Nephew

, according to a

Dow Jones Newswires

report.

Zimmer predicted that the acquisition would increase its earnings within a year, creating a company with annual sales of more than $2 billion. In 2002, Zimmer recorded worldwide revenue of $1.37 billion.

On Tuesday, Zimmer estimated its second-quarter earnings would be 39 or 40 cents a share, excluding the costs of the proposed merger. Last year it reported second-quarter earnings of 34 cents per share.

Shares of Zimmer were at $44 in midday trading, down $4.28, or 9%.

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