US-based medical technology firm Stryker has signed a definitive agreement to acquire all of the issued and outstanding ordinary shares of Wright Medical.
Stryker has agreed to purchase the stake at a price $30.75 per share, for a total equity value of approximately $4bn and a total enterprise value of approximately $5.4bn including convertible notes.
Wright Medical executive director, chief executive officer and president Robert Palmisano said: “We believe this transaction will provide 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.”
Wright Medical’s global sales approaching $1bn mark
Founded in 1950, Wright Medical is a medical device company that offers surgical solutions for upper extremities including shoulder, elbow, wrist and hand, lower extremities constituting foot and ankle, and operates in biologics business, with approximately $1bn in global sales.
The acquisition is also expected to add a highly complementary product portfolio and customer base to Stryker’s trauma and extremities business.
The portfolio of surgical solutions for upper and lower extremities, advanced preoperative planning technology, and biologics will complement Stryker’s portfolio and strengthen its position in the segment.
The transaction expected to be completed in the second half of 2020, subject to the receipt of applicable regulatory approvals, the Wright Medical shareholders adoption of certain resolutions relating to the transaction, completion of the tender offer and other customary closing conditions.
Stryker chairman and chief executive officer Kevin Lobo said: “This acquisition enhances our global market position in trauma & extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients. Wright Medical has built a successful business, and we look forward to welcoming their team to Stryker.”
