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Zimmer Holdings, Inc. acquires Implex Corp

By Alan Fein - Senior Staff ReporterOrthopedic device maker Zimmer Holdings, Inc.

(NYSE: ZMH; SWX: ZMH) announced Friday that its acquisition of privately held Implex Corp. has been completed.Visit our AXcess News Forum and add your comments on this story. Try your hand at writing, the best story will be published on our news network.

Take our health poll too!Print This PageApril 25, 2004 (AXcess News) Warsaw IN - Orthopedic device maker Zimmer Holdings, Inc. (NYSE: ZMH; SWX: ZMH) announced Friday that its acquisition of privately held Implex Corp. has been completed. Implex is now a wholly owned subsidiary of Zimmer.

Zimmer paid $98.6 million in cash in the transaction, including $9.8 million placed in an escrow account for 18 months. In addition, former Implex shareholders will be entitled to receive additional cash earn-out payments at various dates through 2006 if performance targets for the sale of certain Implex products are met.

"We are pleased to welcome Implex employees to the Zimmer family as we begin to work even more closely together to maximize the potential of Trabecular Metal Technology," said Ray Elliott, Zimmer Chairman, President and CEO. "Because we've been marketing Trabecular Metal products for more than three years, we have a running start on both integration and newtechnology applications. We have 13 active Trabecular Metal Technology development projects in the reconstructive area and we will be expanding our spinal products significantly."In 2000, Zimmer entered into an exclusive, worldwide strategic alliance for the marketing and commercialization of Implex's innovative Hedrocel(R) biomaterial, which Zimmer has marketed as Trabecular Metal Technology.

Zimmer currently markets hip, knee and shoulder replacement implants, and trauma products using the technology. Made of the highly biocompatible element Tantalum, Trabecular Metal technology is very similar to natural bone in its porosity, structural strength and bending characteristics, making it an ideal choice for orthopaedic implants. Because it is a free-standing structure rather than a surface coating, it allows for the development of completely porous devices.The Warsaw-based orthopedic maker's shares were raised to Buy from Neutral by First Albany April 1st.

First Albany's improved rating came on the heels of an announcement made by the Company that it expected first quarter earnings to exceed analysts predictions.Zimmer reported sales for the quarter of approximately $740 million, exceeding the First Call consensus estimate of $704 million. Earnings estimates for the quarter were reported to be $0.51 a share.

A news release detailing the quarter results will be made available on Monday, April 26, 2004, after the close of the New York Stock Exchange. The company will conduct its first quarter sales and earnings conference call, which will be broadcast live over the Internet, on Tuesday, April 27, 2004, at 8:00 a.m. Eastern Time.

During the call, the company will update its guidance for 2004.Shares of Zimmer closed Friday at $82.88, down $1.71 or 2.

02%, on volume of 834,500 shares. The 90-day average daily volume was reported to be 1,014,727 shares. The 52-week hi/lo was reported to be $41.20 to $85.

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