Never far from the headlines, Stryker Corporation has now signed a definitive agreement to acquire assets of Small Bone Innovations, Inc. (“SBi”) in an all cash transaction for up to $375 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 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. The transaction is expected to close in the third quarter of 2014.
“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.”
Source: Stryker Corporation