Stryker to Acquire Trauson Holdings for $764 Million (Orthopedics This Week)
Stryker announced plans today to acquire Trauson Holdings, the leading trauma manufacturer in China, a move that will strengthen the company's presence not only in China, but other emerging markets as well. Stryker will pay $764 million in cash for Trauson, or HK $7.50 ($0.97) per share, representing a 45% premium over the closing price of HK $5.16 ($0.67) on January 8, 2013. Net of cash, the deal is valued at $685 million, which is approximately 8.3x consensus 2012E revenues and 19.9x consensus 2012E EBITDA.
Just last week, Stryker CEO, Kevin Lobo, proclaimed that the company had a strong desire and ambition to expand its footprint in emerging marketplaces. In regards to the transaction, Mr. Lobo stated that, "The acquisition of a leading player in the Chinese trauma and spine market underscores our commitment to strengthening our presence globally. With its research and development expertise, manufacturing capabilities and strength of its distribution network, Trauson is a compelling opportunity for Stryker to drive growth in China and other emerging markets for years to come."
This deal comes hot-on-the...
