Secondary offering could drum up $1.1B for Zimmer Biomet shareholders

Zimmer Biomet (NYSE:ZBH) said today that an 11 million-share secondary offering by some of its shareholders could drum up nearly $1.1 billion. The Warsaw, Ind.-based orthopedics titan said affiliates of hedge fund Blackstone and investment bank Goldman Sachs are selling shares at $96.45 apiece. ZBH shares slid -1.6% to $95.99 apiece in pre-market trading today, after posting a $97.51 close yesterday. The offering is expected to close Feb. 10. Zimmer Biomet said it plans to buy $250 million worth its shares when the offering closes from underwriter Barclays Capital at the weighted average price Barclay’s pays to Blackstone and Goldman Sachs. Last month the company reported that 4th-quarter profits plunged nearly -81%, but still managed to beat Wall Street’s earnings expectations by a nickel. Profits were $29.7 million, or 14¢ per share, on sales of $1.93 billion for the quarter, amounting to a -80.7% bottom-line slide on sales growth of 58.1% compared with Q4 2014. Adjusted to exclude 1-time items, earnings per share were $2.09, 5¢ ahead of expectations on The Street. Full-year profits were $49.7 million, or 26¢ per share, on sales of $6.0 billion, marking a -93.1% profit slide on sales growth of 28.3% compared with 2014. Adjusted EPS were $6.90, missing The Street by 6¢. The post Secondary offering could drum up $1.1B for Zimmer Biomet shareholders appeared first on MassDevice.
Source: Mass Device - Category: Medical Equipment Authors: Tags: Orthopedics Wall Street Beat Source Type: news