This morning Stryker announced a definitive agreement to acquire Wright Medical Group N.V. for about $4 billion. The deal includes issued and outstanding ordinary shares of the company. The total enterprise value of the deal is $5.4 billion.
Upfront it sounds like a good acquisition for Stryker, as Wright Medical’s product portfolio is “highly complementary” to Stryker’s trauma and extremities line.
“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 in a Stryker Corp. press release.
The acquisition is expected to close in the second half of 2020, however analysts note that Stryker may face antitrust issues in the United States. Analyst Mike Matson of Needham states that the issues could be surrounding the foot and ankle segment. Larry Biegelsen of Wells Fargo states that Stryker might be pushed to divest its STAR ankle business, because Wright Medical has a 70% share in the total ankle replacement market.