By ANGELA CHEN
Updated Jan. 6, 2015 7:57 a.m. ET
Biomet Inc. said earnings soared in its November-ended quarter, led by a double-digit sales increase in the spine and bone-healing division.
The manufacturer of artificial knees and hips, among other orthopedic devices, agreed in April to be acquired by rival Zimmer Holdings Inc. for about $13.35 billion in cash and stock, a bid to position the combined company as a leader in making products to repair muscles and bones. That move effectively ended Biomet’s plan for an initial public offering in 2014.
But in October, European Union regulators opened an in-depth probe into the deal, saying it could result in less innovation and higher prices. The decision raises a potential hurdle to the landmark deal, which has yet to be approved by U.S. regulators.
However, Zimmer said in November that the deal is still expected to close in the first few months of 2015.
Total sales climbed 2.2% to $844 million, led by a 19% increase in the spine and bone-healing division. However, sales in the dental department fell 4%.
Sales in the U.S. rose 3.9% to $512 million, and international sales rose 3.7% to $125 million.
Meanwhile, research and development costs rose 3.6% in the quarter, while selling and administrative expenses rose 8%.
The strong results come after a disappointing August quarter, when profit fell 77% due largely to high expenses.
Write to Angela Chen at angela.chen@dowjones.com
