Biomet Inc. has offered to buy the trauma products business of DePuy Orthopaedics Inc. for $280 million in cash, the Warsaw-based medical device maker said on Tuesday.
DePuy, a unit of New Jersey-based Johnson & Johnson since 1998, also is based in the northern Indiana city of Warsaw.
Biomet, which designs and manufactures orthopedic products for surgical and non-surgical uses, said the deal would greatly expand its sports, extremities and trauma business. DePuy makes artificial joints and other orthopedic devices.
J&J is attempting to spin off DePuy’s trauma products business as it seeks to finalize its planned $21.3 billion acquisition of Swiss medical device maker Synthes Inc.
“We believe the divestiture will satisfy all regulatory concerns relating to the pending purchase of Synthes by Johnson & Johnson, but we will not know with certainty until the regulatory processes in the [European Union] and U.S. are completed,” J&J said in a prepared statement. “We continue to make progress in our work with antitrust authorities on the Synthes transaction.”
The European Commission opened an expanded probe last November of J&J's bid to buy Synthes in a deal that would make J&J the leader in the $5.5 billion trauma device market. The Brussels-based regulator is expected to rule on the acquisition by April 26.
Biomet’s offer to DePuy expires June 1 but could be extended under certain circumstances.