STRYKER CORPORATION BUYING WRIGHT MEDICAL FOR $4 BILLION
by John G. Baresky on 11/05/19
Stryker continues to advance its position in medical device, orthopedics and health technology
Stryker Corporation ( NYSE: SYK ) is acquiring medical product manufacturer Wright Medical for $4 billion. Wright Medical ( NASDAQ: WMGI ) was started in 1950; it manufactures an array of products aligned with orthopedics including fixation and fusion systems designed for ankles, elbows, shoulders, toes and wrists.
Wright Medical and Stryker overview
Wright's U.S. headquarters is located in Memphis, Tennessee; global operations are orchestrated in Amsterdam, the Netherlands and London, UK.
Stryker Corporation, founded in 1941 and based in Kalamazoo, Michigan, produces numerous categories of products used throughout the healthcare sector including implants used in joint replacement and trauma medical procedures; surgical equipment and surgical navigation systems; endoscopy and communications systems; patient handling and emergency medical equipment. Stryker also manufactures neurosurgical, neurovascular and spinal devices plus a variety of other healthcare specialty products.
Acquisitions a key element in Stryker's growth
Mergers and acquisitions continue to be a go-to strategy in the medical device and pharmaceutical healthcare industry sectors to catapult growth and reduce costs. Stryker acquired Mobius Imaging and Cardan Robotics in September, 2019, for $500 million. Since 2016, Stryker has spent over $12 billion to acquire these and other companies:
- Arrinex
- Entellus ( $664 million )
- Hygia Health Services
- HyperBranch Medical Technology ( $220 million )
- Invuity
- K2M ( $1.4 billion )
- Mobius ( $500 million )
- Orthospace ( $220 million )
- Patient Safety Products
- Physio Control ( $1.28 billion )
- SafeAir
- Sage Products ( $2.8 billion )
- Scopus
- TSO3
Stryker a robust contender in the Fortune 500 and healthcare business sector
Stryker continues to climb in the Fortune 500; currently ranked at #233 and employs over 36,000 persons. The combination of Stryker’s and Wright Medical's products will form a robust portfolio of devices, implants, equipment and technology for hospitals, health systems, surgery centers and other medical provider organizations. Their competitors include:
- Catalent ( NYSE: CTLT )
- DJO Global ( privately held )
- Getinge ( OTCMKTS: GNGBY )
- Hillrom ( NYSE: HRC )
- Johnson & Johnson ( NYSE: JNJ )
- Medline ( privately held )
- Medtronic ( NYSE: MDT )
- Smith & Nephew ( NYSE: SNN )
The two organizations expect to finalize their transaction by mid-2020 pending final approval by each organization and regulatory agencies.
LinkedIn: John G. Baresky
Twitter: Healthcare Marketing Guy
