Bank of America and Goldman Sachs have committed to finance the $10.9 billion buyout of Biomet by a consortium of investors including The Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co and Texas Pacific Group. Exact terms of the financing could not be determined. The company announced Dec. 18 it would be acquired by the consortium for $44 per share.
On the same day, Biomet announced it would delay its second quarter earnings release and an investor conference call set for last Wednesday due to developments related to the review of historical stock option practices. The company formed a special committee to conduct an independent investigation of Biomet's stock option grants for the period between 1996 till today after two lawsuits alleging improper options backdating were brought against it.
Based in Warsaw, Ind., Biomet designs, manufactures and markets products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Calls to a Biomet spokesman were not returned nor were calls to spokesmen for the private equity groups.