Wright Medical Does A Deal Both Opportunistic And Defensive (SeekingAlpha)
Summary
Wright Medical agrees to pay over 10x 12-month revenue for Cartiva, a fast-growing manufacturer of a cartilage replacement implant used in surgical procedures for the big toe.
Cartiva could add over 1% to Wright Medical's long-term growth rate and at higher margins, with worthwhile cross-selling opportunities in the early years.
The deal dilution is less than ideal, but Wright Medical continues to build a differentiated high-growth platform in extremities and post-deal fair value should be above $30/share.
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