Jan 17 Medical device maker Stryker Corp
said it will buy Hong Kong-based Trauson Holdings Co Ltd
for $764 million in cash to expand in China, one of
the fastest-growing markets for orthopaedic products.
Stryker will pay HK$7.50 ($0.97) for every share of Trauson.
The offer is at a premium of about 45 percent to Trauson's
closing price on Jan. 8, when the shares were halted on the Hong
Kong Stock Exchange.
Founded in China in 1986, orthopaedics firm Trauson had
sales of about $60 million in 2011 and makes spine devices and
products for trauma surgeries.
"With its research and development expertise, manufacturing
capabilities and strength of its distribution network, Trauson
is a compelling opportunity for Stryker to drive growth in China
and other emerging markets for years to come," Stryker CEO Kevin
Lobo said in a statement.
Stryker, which has a market capitalization of nearly $23
billion, makes surgical implants, spine devices and various
other medical equipment.
Trauson's controlling shareholder, Luna Group, has agreed to
tender 61.7 percent of Trauson shares.
Barclays Capital advised Stryker on the deal, which is
expected to close by the end of the second quarter.
The deal is expected to be neutral to Stryker's 2013
earnings, excluding related charges, and will add thereafter.
Stryker shares have risen about 12 percent over the last six
months and closed at $59.43 on the New York Stock Exchange on
Shares of Trauson have more than doubled over the last year.