Bank of America 2007 Annual Report Download - page 27

Source: Freeman & Co.
TAKING AN ORTHOPEDIC
LEADER PRIVATE
BB
y early 2006, Biomet Inc. had
morphed from a start-up company
with sales of $17,000 in 1978, its
first year, into an orthopedics
industry leader, generating more
than $2 billion in annual revenue. Looking
toward the future, the board of the Warsaw,
Indiana–based manufacturer of musculoskeletal
products such as orthopedic implants announced
its plans to review strategic alternatives.
Based on its extensive relationships with pri-
vate equity firms and in-depth knowledge of the
medical technology industry, Bank of America
approached leading financial sponsors with
an idea for a leveraged buyout of Biomet.
Leveraged buyouts in this sector were not
common at the time. Over the next six months,
Bank of America advised a private equity
consortium that included The Blackstone Group,
Goldman Sachs Capital Partners, Kohlberg
Kravis Roberts & Co. and TPG Capital. The
consortium presented the proposal to Biomet
and its financial advisors, conducted due
diligence and agreed in December 2006 to take
Biomet private for approximately $11 billion in the
largest medical products leveraged buyout ever.
Banc of America Securities acted as lead
financial advisor to the consortium and developed
and underwrote an innovative capital structure
to finance the acquisition. Following the deal’s
announcement, the team continued to support
the financial sponsors as they worked over the
next nine months to complete the transaction and
conclude Biomet’s transition to private ownership.
Further demonstrating its ability to customize
a solution, the Bank of America team worked with
its clients to modify the structure of the transac-
tion to include a tender offer for Biomet’s stock.
Bank of America demonstrated excellence at
every step in the transaction during a time of
unprecedented market volatility, the sponsors
noted. They added that the bank’s health-care
industry acumen and innovative capital markets
and leveraged finance capabilities helped the con-
sortium execute this pivotal transaction and posi-
tion the Biomet team for a long, prosperous future.
BANK OF AMERICA PLAYED AN INSTRUMENTAL ROLE IN THE LARGEST
MEDICAL PRODUCTS LEVERAGED BUYOUT IN HISTORY.
Orthopedic surgeons
perform a total knee
replacement using a
Biomet system.
▲
Bank of America 2007 2525
By coupling the strength of its M&A business with first-class
expertise in corporate and leveraged finance, Bank of America
delivers the intellectual and financial capital its clients need to
complete transactions in favorable and challenging markets alike.
The combination of these capabilities in a single financial
partner is a compelling value proposition. “Our universal banking
platform — characterized by strong idea generation, market lead-
ership in corporate and leveraged finance and robust distribution
capabilities — gives Bank of America a powerful competitive
advantage that enables us to win with clients time and time
again,” said Brian J. Brille, head of Global Investment Banking.
“Equally important to the success of our corporate clients is our
ability to structure deals that appeal to investors, even in a chal-
lenging market,” noted Thomas G. White, head of Global Markets.
“Our deep relationships with diverse investors, blended with our
market intelligence, create a potent formula for our issuer clients.”
Delivering the universal bank’s capabilities to its clients
Bank of America share
of investment banking
fees in fi nancial sponsor
health-care deals
Steady
Growth
2007
2006
2005
15.5%
10.7%
8.6%