On May 23, 2016, we issued an updated research report on Zimmer Biomet Holdings, Inc. ZBH – a major player in the musculoskeletal industry. The consolidated company formed post the merger of the legacy Zimmer Holdings and Biomet, recently reported better-than-expected first-quarter 2016 results with respect to both earnings and revenues.
Net synergies from the merger are currently anticipated to exceed $350 million in pre-tax by the end of the third year, post transaction. The company also expects the merger to contribute 95 cents to $1.05 to adjusted earnings per share with $135 million of pre-tax, net synergy savings in the first year of the acquisition. Moreover, the growth rate of adjusted earnings per share beyond 2015 is likely to accelerate.
Zimmer Biomet, post integration, will operate on a more comprehensive and diversified musculoskeletal portfolio, commanding 17% market share and attractive cross selling opportunities. The combined company will be supported by a research and development spending capability of approximately $360 million.