Stryker in an Acquisitive Mood

Kalamazoo, Mich.-based Stryker Corp. will buy Memometal Technologies SA, a French company that makes foot and hand implants, in a deal worth up to $162 million.

Stryker said it will pay $150 million for privately held Memometal. Memometal is based in Bruz, France, and has divisions in Germany and Switzerland. The company’s North American headquarters is in Memphis, Tenn. The all-cash deal also includes up to $12 million in payments that depend on the business achieving certain milestones. Memometal makes hand, wrist, foot and ankle implants, and Stryker said its revenue totaled about $30 million in 2010.

Stryker, which had $7.32 billion in revenue in 2010, said the acquisition should close during the third quarter and will be neutral to its 2011 profit. In May, Stryker agreed to buy competitor Orthovita Inc. for $304 million in cash.

“The acquisition of Memometal provides Stryker with the platform to further establish our company as a key player in the rapidly growing foot and hand segment of the extremities market and creates a strong presence in the podiatric surgery market,” said Stephen P. MacMillan, chairman, president and CEO of Stryker.

According to Michael Matson, an analyst with Mizuho Securitues, the worldwide market for extremity implants such as Memometal’s is worth about $1 billion, and it has been growing by more than 10 percent a year in recent years.