Medtronic to pay $816 million for Chinese orthopedic implant maker (Twin Cities)
Medtronic is paying $816 million to acquire a Chinese manufacturer of orthopedic devices in a deal that's meant to expand the Fridley-based company's reach in emerging markets.
Medtronic will pay $30.75 per share for China Kanghui Holdings in a transaction with a value of about $755 million after factoring Kanghui's cash, the companies announced Thursday, Sept. 27.
A growing share of Medtronic sales is coming from outside the United States. Chief Executive Omar Ishrak made boosting sales in emerging markets such as China and India a priority upon taking the top job at Medtronic in June 2011.
"This agreement is directly aligned with our corporate strategies of globalization and economic value," Ishrak said in a statement. "Kanghui represents a significant investment in China, accelerating Medtronic's overall globalization strategy with an established value segment distribution network and strong (research and development) and operational capabilities."
Founded in 1997, Kanghui reported net revenue of $52 million in 2011, nearly a 35 percent increase over company sales during 2010.
Analysts estimate the ...
