
Orthopedic devices maker Tornier (NSDQ:TRNX) this week agreed to pay $135 million for reconstructive devices maker OrthoHelix.
Tornier plans to pay $100 million in up-front cash and $35 million in Tornier stock, paying for the deal with cash on hand and borrowings, according to a company statement.
OrthoHelix deals primarily in implantable screws and plate systems for small bone fractures and deformities with strong recent sales growth led by its MaxLock Extreme product line.
The companies hope OrthoHelix’s products will complement Tornier’s portfolio of ankle arthroplasty devices, biologics, and other foot and ankle implants.
"The transaction will enable us to substantially expand our sales coverage of foot and ankle surgeons, significantly enhance our addressable lower extremity market opportunity, and position us to achieve more consistent growth across our upper and lower extremity product categories," Tornier president & CEO Douglas Kohrs said in prepared remarks.
Tornier expects the merger to be dilutive to its 2013 earnings per share, but accretive to cash earnings per share in 2014, according to a company statement.