Healthcare Industry News: Small Bone Innovations
News Release - June 30, 2014
Stryker Announces Definitive Agreement to Acquire Assets of Small Bone Innovations, Inc.Kalamazoo, Michigan - June 30, 2014 -- (Healthcare Sales & Marketing Network) -- Stryker Corporation (SYK) announced today a definitive agreement to acquire assets of Small Bone Innovations, Inc. ("SBi") in an all cash transaction for up to $375 million. The net cost to Stryker after taking into account the present value of the tax benefits as a result of the asset purchase structure will be up to $285 million. Founded in 2004, SBi is a privately held business headquartered in Morrisville, Pennsylvania with facilities in France and Germany. SBi products are designed and promoted for upper and lower extremity small bone indications, with a focus on small joint replacement.
The assets to be acquired include the Scandinavian Total Ankle Replacement System (STAR Ankle). The STAR Ankle, sold globally in over 40 countries, is the only PMA approved, cementless, three-piece total ankle replacement system and is the most published total ankle replacement product in the world. With the addition of the STAR Ankle to the Stryker Foot & Ankle product portfolio, Stryker comprehensively addresses the broad range of foot and ankle procedures. Additional assets include finger, wrist, and elbow products, further expanding the existing Stryker upper extremity product offerings. The sales of the acquired products were approximately $48 million in 2013.
"The addition of the STAR Ankle strengthens our product offering in this fast growing business, and demonstrates our continued commitment to growth in this segment and more broadly in extremities," said David Floyd, Group President, Orthopaedics. "We are dedicated to providing our Foot & Ankle customers and their patients with a complete set of solutions for their clinical needs."
The transaction is subject to customary closing conditions including the expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. Upon closing, the transaction is expected to be $0.02 dilutive to Stryker`s 2014 earnings per share excluding acquisition, integration-related and intangible amortization charges. The transaction is expected to close in the third quarter of 2014.
Stryker is one of the world`s leading medical technology companies and together with our customers, we are driven to make healthcare better. The Company offers a diverse array of innovative medical technologies, including reconstructive, medical and surgical, and neurotechnology and spine products to help people lead more active and more satisfying lives. Stryker products and services are available in over 100 countries around the world. Please contact us for more information at www.stryker.com.
This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to the Rejuvenate and ABG II matter; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; the impact of the federal legislation to reform the United States healthcare system; changes in financial markets; changes in the competitive environment; our ability to integrate acquisitions, including the acquisition of Small Bone Innovations, Inc.; and our ability to realize anticipated cost savings as a result of workforce reductions and other restructuring activities. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
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