Stryker acquisition targets Chinese medical device market

Medical equipment maker Stryker (SYK.NYSE) will acquire Hong Kong-based Trauson (0325.HKG) for US$764 million as it looks to expand in China, Reuters reported. Stryker will pay US$0.97 per outstanding share of Trauson, a premium of around 45% compared to its January 8 closing price. Trauson, which makes spine devices and products for trauma surgeries, was founded in China in 1986 and had sales of about US$60 million in 2011. Stryker has a market capitalization of nearly US$23 billion and makes surgical implants, spine devices and other medical equipment. Stryker CEO Kevin Lobo said in a statement that “with its research and development expertise, manufacturing capabilities and strength of its distribution network, Trauson is a compelling opportunity for Stryker to drive growth in China and other emerging markets for years to come.” China is one of the world’s fastest-growing markets for orthopedic products.