NEW YORK (TheStreet) -- Shares of Zimmer Holdings Inc. (ZMH) are soaring, up 16.57% to $106.60 in pre-market trade, after the joint replacement technologies company said it would buy orthopedic products company Biomet Inc. for about $13.35 billion.
Zimmer will pay $10.35 billion in cash and issue $3 billion in shares to Biomet shareholders, Reuters reports.
Biomet was taken private for $11.4 billion in 2007 by a private equity consortium that included Blackstone Group (BX), Goldman Sachs Capital Partners (GS), Kohlberg Kravis Roberts & Co. (KKR) and TPG.
TheStreet Ratings team rates ZIMMER HOLDINGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZIMMER HOLDINGS INC (ZMH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: