Medtronic ($MDT) has closed the book on its $816 million acquisition of China's Kanghui Holdings, locking down shareholder approval for its buy of the orthopedics company.
The company has a longstanding goal of getting 20% of its revenue from emerging markets by 2016, and absorbing Kanghui's portfolio of trauma, spine and joint-reconstruction devices will help Medtronic become a leading force in China, Vice President Chris O'Connell said.
"The integration of Kanghui provides Medtronic a strong position in China's rapidly expanding orthopedics segment, as well as a high potential platform for development of a global value segment in orthopedics," O'Connell said in a statement.
The Kanghui buy is Medtronic's largest Chinese acquisition, but it's not the only one. Earlier this month, the company spent $66.2M for a stake in Shenzhen's LifeTech Scientific and in 2011 launched a joint venture with Shandong Weigao. Medtronic has stepped up its Chinese interests of late, joining Johnson & Johnson ($JNJ), Covidien ($COV) and others in opening R&D facilities in the country.
For years, devicemakers approached the fast-growing Chinese market by trying to port U.S. techs overseas, often struggling to find buyers in the comparatively cash-strapped environment. Recently, however, the industry giants have looked to partner with--or buy outright--local firms, using in-country know-how to develop devices better suited for China's hospitals and reimbursement structures.
- read Medtronic's release