(Reuters) - Smith & Nephew Plc said on Tuesday it would buy U.S.-based regenerative medicine maker Osiris Therapeutics for $660 million, as the British medical products maker looks to bulk up in an area that is quickly growing.
The deal will help Smith & Nephew better compete with bigger rivals such as U.S.-based Johnson & Johnson as Osiris’s products, including skin and bone grafts, complements its portfolio of wound care products.
“Greater presence in the fast growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business,” Smith & Nephew Chief Executive Officer Namal Nawana said.
Smith and Nephew will pay Osiris shareholders $19 in cash for each share they hold. Osiris shares closed at $18.88 on the Nasdaq on Monday.
Osiris brought in revenue of $102 million for the nine-months ended Sept.30, 2018, an 18.7 percent rise over the same period in 2017.
The acquisition also underscores a strategy adopted by Nawana, who was appointed in April in part for his deal-making expertise and knowledge of the U.S. market, where London-based Smith & Nephew makes about half of its revenue.
Smith & Nephew, no stranger to M&A talks, had highlighted its push to expand its offerings through deals during an earnings call in February.
Reporting by Pushkala Aripaka in Bengaluru; Editing by Sai Sachin Ravikumar and Arun Koyyur