Stryker to Acquire Wright Medical Group in $5.4 Billion Deal to Bolster Position in Devices Industry

3:39 PM, Nov 4, 2019 — Stryker (SYK) on Monday said it has reached an agreement to acquire Wright Medical Group (WMGI) in a $5.4 billion deal that will boost its position in the medical devices industry.

Kalamazoo, Mich.-based Stryker said it would pay $30.75 for each Wright share, giving the transaction a total equity value of $4 billion. The acquisition has a $5.4 billion enterprise value when including the Dutch medical-device maker’s outstanding convertible notes, the companies said in separate statements.

Wright shares soared 32% while Stryker was 2.7% lower in afternoon trading.

“This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advanced innovation, improve outcomes and reach more patients,” said Chief Executive Kevin Lobo.

Stryker said that Wright’s “lower extremity and biologics will complement Stryker’s portfolio and strengthen the company’s position in this high-growth segment.”

Wright has global sales of nearly $1 billion and is a leader in upper extremities like shoulder, elbow and lower extremities like the foot and ankle. It also has a role in the biologics markets, Stryker said.

The deal, which is poised to close in the second half of next year, is expected to have no impact to Stryker’s 2019 adjusted per-share earnings. Stryker said that assuming a September 2020 closing, the tie-up will have no impact on its adjusted EPS next year, have a $0.10 dilution in 2021, and be accretive after that.

“We believe this transaction will provide truly unique opportunities and will create significant value for our shareholders, customers and employees,” said Wright CEO Robert Palminsano. “By merging our complementary strengths and 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 share our vision of delivering breakthrough and innovative solutions to improve outcomes.”

Companies: Stryker Corporation
Price: 204.64 Price Change: -8.13 Percent Change: -3.82

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