Deal value: $5.4 billion
Announced: November 4, 2019
Closed: November 11, 2020
A year in the making, Stryker finally closed the deal for its fellow device maker Wright Medical, whose portfolio spans multiple joint replacement, fixation and fusion systems for shoulders, elbows, wrists, ankles and toes.
Wright has said it expects global markets spanning the upper and lower extremities to grow by 7% to 10% annually, spurred on by the development and delivery of anatomy-specific devices, as well as a rise in the number of total ankle replacements.
The company’s shoulder implants, replacements and procedure-planning technologies serve as the newcomers to Stryker’s portfolio—while Wright’s lower extremity offerings, including a biologic bone graft for ankle fusions, will complement Stryker’s catalog of foot-focused products.
Except, that is, for its own ankle replacement lines. The Federal Trade Commission ordered Stryker to sell all those assets, along with its finger joint implants for osteoarthritis, to DJO Global as a prerequisite for the deal.
Wright and Stryker represent the largest and third-largest suppliers of total ankle replacements, respectively, and together would have controlled about 75% of the U.S. market, according to the FTC.
While the deal had a total equity value of about $4 billion, the addition of convertible notes and debt pushed its full enterprise value to about $5.4 billion, making it Stryker’s largest-ever acquisition.
But not long after the close, Stryker launched a new M&A deal in early January for OrthoSensor, makers of disposable movement sensors used during knee replacement procedures, to help surgeons measure and adjust the joint’s balance, load and compression forces. The transaction amount was not disclosed.