Three Companies Merge to Form Genzyme Biosurgery
The new company will focus on bio-orthopedics and cardiothoracic surgery, among other areas.
Genzyme Biosurgery will be composed of Biomatrix, a manufacturer of viscoelastic biomaterials for use in orthopedic and other medical applications; Genzyme Tissue Repair, a developer of biological products for the treatment of orthopedic injuries and severe burns; and Genzyme Surgical Products, developer of medical devices, biomaterials, and biotherapeutics for cardiothoracic and other surgical markets.
Genzyme Biosurgery will accelerate Genzyme Corp.'s development of the biosurgery market, which is being created by the increasing use of biomaterials and biological products to enhance or replace conventional mechanical approaches to surgery and other interventional and medical procedures.
Under the terms of the agreement, Genzyme Biosurgery will be formed by combining the two Genzyme divisions in stock-for-stock exchanges to form one unit, and then acquiring Biomatrix in an exchange of stock and cash. The combined market value of the three organizations at the close of business on March 3 totaled $1.3 billion.
Following completion of the merger, Biomatrix shareholders will hold approximately 47% of Genzyme Biosurgery, Genzyme Tissue Repair shareholders will hold approximately 27%, and Genzyme Surgical Products shareholders will hold approximately 26%. Genzyme Tissue Repair shareholders will receive 0.3352 shares and Genzyme Surgical Products shareholders will receive 0.6060 shares of Genzyme Biosurgery stock for each share of their stock.
The new company will have estimated annual revenues of more than $250 million, over 1300 employees, and six dedicated manufacturing facilities. Duke Collier, president of Genzyme Surgical Products, will become president of the new company.
The transaction is expected to close by the end of June 2000, pending regulatory and shareholder approvals.