Medtronic to acquire orthopaedic device maker China Kanghui for $816 mn
28 Sep 2012
Medtronic Inc, the world's largest independent medical products maker, today said it is buying orthopaedic device maker China Kanghui Holdings, for $816 million in a cash deal that would enable it to enter the rapidly growing Chinese medical device market.
The total value of the transaction, net of Kanghui's cash, is around $755 million.
Medtronic will pay $816 million or $30.75 per American depository share, representing a 22.5 per cent premium to Kanghui's yesterday closing price on the New York Stock Exchange.
Founded in 1997 in Changzhou, Kanghui is one of China's leading orthopaedic companies with a diverse product portfolio in trauma, spine, and surgical instruments.
Kanghui, which went public in 2010, manufactures implantable screws, nails, plates, meshes, and other devices used to treat bone fractures and spinal disorders. It distributes its devices, which are sold under the Kanghui and Libeier brands to hospitals in China through a network of around 240 distributors.
The company markets its products both within China and over 28 international markets, and has collaborations with multi-national companies.
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