UPDATE: Stryker To Acquire Orthovita For $304 Million In Cash
16 Mayo 2011 - 9:24AM
Noticias Dow Jones
Stryker Corp. (SYK) said Monday it has signed a definitive
agreement to acquire Orthovita Inc. (VITA), a small maker of
orthobiologic and biosurgery products, for about $304 million in
cash.
Shareholders will receive $3.85 for each share, a 41% premium
over Friday's close. The deal also includes $12 million in debt.
Shares of Malvern, Penn.-based Orthovita surged early Monday to
just under the offer price, a level not reached since about a year
ago.
Stryker, Kalamazoo, Mich., traded down a penny to $63.27.
Orthovita competes in the $5 billion orthobiologics market,
offering synthetic bone grafts through its Vitoss product and also
competes in vertebral augmentation with its Cortoss product. The
company's product sales rose 2% to about $95 million last year, and
analysts surveyed by Thomson Reuters expect, on average, a 4.4%
gain this year.
Stryker's big business for replacement hips and knees has posted
flat sales recently as the orthopedics market struggles to overcome
a slowdown caused by economic turmoil and high unemployment. The
sluggish orthopedic performance has been offset, however, by strong
growth in a business for hospital and surgical products that
continues to rebound from a slowdown in hospital spending.
"With this acquisition we are meaningfully expanding our
orthobiologics product portfolio and strengthening our competitive
position in key segments of the Spine, Orthopaedics and Biosurgery
markets," Stryker Chief Executive Stephen P. MacMillan said in a
release.
The Orthovita deal comes just weeks after big orthopedics rival
Johnson & Johnson (JNJ) announced a $21.3 billion deal for
Synthes Inc. (SYST.VX) to bolster its trauma and spinal
businesses.
Stryker plans to launch an all-cash tender offer for Orthovita
within 10 business days, which will be completed in the second
quarter.
Orthovita has recommended shareholders accept the offer, and
those who hold about 14.5% of the company's shares outstanding have
already committed.
Stryker reported last month that its first-quarter earnings fell
4.4% on acquisition and integration-related charges, but the
company posted a double-digit sales increase behind continued
growth in its medical-supplies franchise and a newly acquired
business.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com
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