07.22.14
Not to be left out of all the recent dealmaking, orthopedic and medical equipment maker Stryker Corp. is buying bone and joint replacement maker Small Bone Innovations (SBI) for up to $375 million in cash.
The company said that as a result of tax benefits from the purchase, the net cost to Stryker will be $285 million. Currently headquartered in Morrisville, Pa., SBI was founded 10 years ago and designs products that are used in small bones and joints to address and treat trauma and diseases. In addition to its headquarters in Morrisville, it also has facilities in France, Germany and Malaysia.
Last year, SBI had approximately $48 million in sales, according to Stryker.
“The addition of the [Scandinavian Total Ankle Replacement System, also called the STAR ankle] strengthens our product offering in this fast-growing business, and demonstrates our continued commitment to growth in this segment and more broadly in extremities,” noted the president of orthopedics at Stryker, David Floyd, in an announcement. “We are dedicated to providing our foot and ankle customers and their patients with a complete set of solutions for their clinical needs.”
The press release noted that the cementless three-piece ankle replacement product is available in more than 40 countries.
Besides the STAR ankle, Stryker is buying from SBI various replacement products used in fingers, wrists and elbows. Stryker claims the acquisition will allow its foot and ankle product portfolio to address the broad range of procedures across small bone extremities.
Needham & Co. analyst Michael Matson said the purchase makes Stryker more competitive in the foot and ankle device market, and STAR ankle “fills a noticeable hole” in Stryker’s portfolio.
SBI is owned by well-known orthopedic entrepreneurs and investors, Viscogliosi Brothers LLC, a New York, N.Y.-based merchant banking firm that specializes in the musculoskeletal/orthopedics sector. ”This transaction is the next step of growth for Small Bone Innovations’ world-class products—especially the STAR total ankle—and is a perfect fit with Stryker’s product suite and global reach of its distribution system,” said Michael P. Simpson, president and CEO of SBI.
The company said that as a result of tax benefits from the purchase, the net cost to Stryker will be $285 million. Currently headquartered in Morrisville, Pa., SBI was founded 10 years ago and designs products that are used in small bones and joints to address and treat trauma and diseases. In addition to its headquarters in Morrisville, it also has facilities in France, Germany and Malaysia.
Last year, SBI had approximately $48 million in sales, according to Stryker.
“The addition of the [Scandinavian Total Ankle Replacement System, also called the STAR ankle] strengthens our product offering in this fast-growing business, and demonstrates our continued commitment to growth in this segment and more broadly in extremities,” noted the president of orthopedics at Stryker, David Floyd, in an announcement. “We are dedicated to providing our foot and ankle customers and their patients with a complete set of solutions for their clinical needs.”
The press release noted that the cementless three-piece ankle replacement product is available in more than 40 countries.
Besides the STAR ankle, Stryker is buying from SBI various replacement products used in fingers, wrists and elbows. Stryker claims the acquisition will allow its foot and ankle product portfolio to address the broad range of procedures across small bone extremities.
Needham & Co. analyst Michael Matson said the purchase makes Stryker more competitive in the foot and ankle device market, and STAR ankle “fills a noticeable hole” in Stryker’s portfolio.
SBI is owned by well-known orthopedic entrepreneurs and investors, Viscogliosi Brothers LLC, a New York, N.Y.-based merchant banking firm that specializes in the musculoskeletal/orthopedics sector. ”This transaction is the next step of growth for Small Bone Innovations’ world-class products—especially the STAR total ankle—and is a perfect fit with Stryker’s product suite and global reach of its distribution system,” said Michael P. Simpson, president and CEO of SBI.
