Stryker Corp., a Fortune 500 medical technologies company in Kalamazoo, has announced a definitive agreement to acquire all of the issued and outstanding ordinary shares of Wright Medical Group in Tennessee for a total equity value of about $4 billion and a total enterprise value of about $5.4 billion.
“This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advance innovation, improve outcomes, and reach more patients,” says Kevin Lobo, chairman and CEO of Stryker. “Wright Medical has built a successful business, and we look forward to welcoming their team to Stryker.”
Wright Medical was founded in 1950 and is a global medical device company focused on extremities and biologics. It has sales approaching $1 billion and specializes in the upper extremities (shoulder, elbow, wrist, and hand), lower extremities (foot and ankle), and biologics markets. It will also add its advanced preoperative planning technology to the combined company.
“We believe this transaction will provide truly unique opportunities and will create significant value for our shareholders, customers, and employees,” says Robert Palmisano, executive director, CEO, and president of Wright Medical. “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.”
Under the terms of the agreement, Stryker will commence a tender offer for all outstanding ordinary shares of Wright Medical for $30.75 per share in cash. The acquisition is expected to close in the second half of 2020 and have no impact on Stryker’s net earnings per diluted share and adjusted net earnings per diluted share.
Stryker offers products and services in orthopedics, medical and surgical, and neurotechnology and spine. Wright Medical’s international headquarters are in the United Kingdom.