Medtronic Inc to acquire orthopedic implant maker China Kanghui
Medical technology company Medtronic Inc has agreed to make payment of $816 million for orthopedic implant maker China Kanghui Holdings Inc.
The maker of heart-rhthym devices expands its fractures and spinal treatment business in the emerging markets. The Minneapolis-based company said in a statement, the pacemaker and spinal implant supplier will pay $30.75 per American depositary receipt in a transaction worth $755 million net of Kanghui’s cash.
The price is about 22% more than the most recent closing level for the ADRs.
Chris O’Connell, President of Medtronic’s Restorative Therapies Group said, “Kanghui brings Medtronic a broad product portfolio, a strong R&D and manufacturing operation, a vast China distribution network and an exceptional management team.” Mr. Chris also said, “The deal provides advantages in the fast-growing Chinese orthopedic segment, as well as a foothold in the emerging global value segment in orthopedics.”
The agreement will close in the next few months. According to the statement, the deal will help Medtronic widen its offerings in neurosurgery and orthopedic.
Medtronic, Inc is based in suburban Minneapolis, Minnesota. It is the world’s largest medical technology company and is also a Fortune 500 company. Medtronic has six main business units that develops and manufactures devices and therapies to treat chronic diseases including heart failure, Parkinson’s disease, urinary incontinence, obesity, chronic pain, diabetes and spinal disorders. Kanghui Medical is China’s leading orthopedic companies offering wide range of products in trauma, spine and surgical instrumentation. The company markets its products in China and in over 28 international markets.