KALAMAZOO — Stryker Corp. plans to buy Wright Medical Group N.V., a Netherlands-based maker of orthopedic products for the ankle, wrist, foot and shoulder, for $4 billion in cash.
Under a definitive agreement announced this morning, Stryker (NYSE: SYK) will offer Wright Medical Group $30.75 per share for outstanding shares. Directors at both corporations have approved the deal.
“This acquisition enhances our global market position in trauma & extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients,” Stryker Chairman and CEO Kevin Lobo, Chairman and Chief Executive Officer said in a statement. “Wright Medical has built a successful business, and we look forward to welcoming their team to Stryker.”
The corporations expect the deal to close in the second half of 2020, pending regulatory and the approval of Wright Medical shareholders.
Stryker said the deal will not affect adjusted net earnings in 2020. The company expects the deal to be dilutive to earnings by 10 cents per share in 2021 and become accretive in the years after.
“By merging our complementary strengths and collective resources, we will be able to advance our broad platform of extremities and biologics technologies with one of the world’s leading medical technology companies that shares our vision of delivering breakthrough and innovative solutions to improve patient outcomes,” said Robert Palmisano, executive director, CEO and president of Wright Medical.
Wright Medical in August reported higher sales of $459.8 million for the first half of 2019, a nearly 14 percent increase from the $403.9 million midway through 2018, with a net loss of $17.8 million.
Sales for all of 2018 totaled $836.1 million with a net loss of $169.5 million.