Stryker Makes Offer For Chinese Orthopedics Manufacturer

U.S.-based Stryker Corporation made an offer for Chinese orthopedic manufacturer Trauson Holdings Company Limited.

AsianScientist (Jan. 21, 2013) – U.S.-based Stryker Corporation made an offer this week to acquire Chinese orthopedic manufacturer Trauson Holdings Company Limited for HK$7.50 per ordinary share and for a total consideration of HK$764 million (approximately US$98.5 million) in an all cash transaction, representing an enterprise value of approximately HK$685 million.

Trauson’s controlling shareholder, Luna Group, has undertaken to accept the offer from Stryker by tendering 61.7 percent of the Trauson shares towards the offer.

Founded in China in 1986 by Chairman Fuqing Qian, Trauson had sales in 2011 approximating HK$60 million and is the leading trauma manufacturer in China and a major competitor in the spine segment.

Stryker and Trauson have maintained a relationship under an OEM agreement for instrumentation sets since 2007. With this acquisition, Stryker will expand its presence in a key emerging market with a product portfolio and pipeline that is targeted at the large and fast growing value segment of the Chinese orthopedic market.

“The acquisition of Trauson is a critical step toward broadening our presence in China and developing a value segment platform for the emerging markets through a well established brand,” said Kevin A. Lobo, President and Chief Executive Officer.

The closing of the transaction is subject to customary conditions. Upon closing, the transaction is expected to be neutral to Stryker’s 2013 diluted net earnings per share excluding acquisition and integration-related charges and accretive thereafter. The transaction is expected to close by the end of the second quarter of 2013.


Source: Stryker.
Disclaimer: This article does not necessarily reflect the views of AsianScientist or its staff.

Asian Scientist Magazine is an award-winning science and technology magazine that highlights R&D news stories from Asia to a global audience. The magazine is published by Singapore-headquartered Wildtype Media Group.

Related Stories from Asian Scientist