Stryker (NYSE:SYK) made a HK$7.50-per-share cash bid for Trauson Holdings (HKG:0325), a Chinese medical device company that makes spinal and trauma care products.
The Kalamazoo, Mich-based medical device company and Trauson have had an OEM relationship since 2007, according to a press release.
"The acquisition of Trauson is a critical step toward broadening our presence in China and developing a value segment platform for the emerging markets through a well established brand," Stryker president & CEO Kevin Lobo said in prepared remarks. "The acquisition of a leading player in the Chinese trauma and spine market underscores our commitment to strengthening our presence globally. 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."
Trauson’s controlling shareholder, Luna Group, tendered 61.7% of Trauson’s shares to Stryker, according to the release offer. The company posted sales of roughly $60 million in 2011.
Stryker said the deal is not expected to affect its earnings per share this year, but will add to them starting in 2014. The merger is expected to close by the end of the 2nd quarter.
