US medical device maker Stryker is to buy smaller rival Wright Medical in a deal worth $5.4 billion (€4.85 billion) including debt as it seeks to boost its exposure to the fast growing orthopaedics market.
Stryker employs 3,500 in the Republic while Wright employs 155.
Michigan-headquartered Stryker said on Monday that it would pay $30.75 per share, a near 40 per cent premium to Wright Medical’s Friday’s closing share price.
The deal has an equity value of $4 billion, with a total enterprise value of approximately $5.4 billion. It is expected to close in the second half of 2020.
Stryker, which in 2018 denied reports linking it to Boston Scientific, said the acquisition will strengthen its trauma and extremities business "in among the fastest growing segments in orthopaedics".
Global sales
Founded in 1950, Wright Medical manufactures implants to treat injuries to parts of the body including the shoulders, elbows and ankles, and has recorded global sales approaching $1 billion.
“This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients,” said Kevin Lobo, chairman and chief executive of Stryker. – Copyright The Financial Times Limited 2019
