Stryker is acquiring a global medical device company focused on extremities and biologics.
The Kalamazoo-based maker of medical devices and equipment signed a definitive agreement to acquire all of the issued and outstanding ordinary shares of Memphis, Tennessee-based Wright Medical Group for $30.75 per share or a total equity value of about $4 billion and a total enterprise value of about $5.4 billion, including convertible notes, according to Stryker today.
The acquisition is expected to close in the second half of 2020 and is subject to regulatory approvals and other customary closing conditions.
It is expected to have no impact to Stryker’s net earnings per diluted share and adjusted net earnings per diluted share in 2019.
Kevin Lobo, chair and CEO of Stryker, said Wright Medical brings a complementary portfolio and customer base to Stryker’s trauma and extremities business, including an upper-extremity portfolio and advanced pre-operative planning technology, as well as lower extremity and biologics portfolios.
“This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients,” Lobo said. “Wright Medical has built a successful business, and we look forward to welcoming their team to Stryker.”
Robert Palmisano, executive director, president and CEO of Wright Medical, said the acquisition will provide Wright Medical with “truly unique opportunities” and will “create significant value for our shareholders, customers and employees.”
“By merging our complementary strengths and collective resources, we will be able to advance our broad platform of extremities and biologics technologies with one of the world’s leading medical technology companies that shares our vision of delivering breakthrough and innovative solutions to improve patient outcomes,” Palmisano said.
Wright Medical Group
Founded in 1950, Wright Medical Group (Nasdaq: WMGI) makes medical devices for the upper extremities (shoulder, elbow, wrist and hand), lower extremities (foot and ankle) and biologics markets.
It reported annual global sales of almost $1 billion.
Founded in 1941, Stryker (NYSE: SYK) offers a diverse array of medical products and services in the orthopedics, medical, surgical, neurotechnology and spinal markets that “help improve patient and hospital outcomes.”
Its products are used in more than 100 countries around the world.
The company reported 2018 revenue of about $13.6 billion.