Stryker Announces Definitive Offer to Acquire Trauson Holdings Company Limited
Published: January 17th, 2013
[Thompson Reuters ONE]
Kalamazoo, Michigan - January 17, 2013 - Stryker Corporation (NYSE:SYK) and
Trauson Holdings Company Limited (SEHK:0325.HK) announced today that Stryker
will make a voluntary general offer to acquire all the shares of Trauson for
HK$7.50 per ordinary share for a total consideration of $764 million in an all
cash transaction, representing an enterprise value of approximately $685
Trauson's controlling shareholder, Luna Group, has undertaken to accept
the offer from Stryker by tendering 61.7% of the Trauson shares towards the
Founded in China in 1986 by Chairman Fuqing Qian, Trauson had sales in
2011 approximating $60 million and is the leading trauma manufacturer in China
and a major competitor in the spine segment. Stryker and Trauson have maintained
a relationship under an OEM agreement for instrumentation sets since 2007.
With this acquisition, Stryker will expand its presence in a key emerging market with
a product portfolio and pipeline that is targeted at the large and fast growing
value segment of the Chinese orthopaedic market.
"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," said Kevin A. Lobo, President and Chief Executive
Officer. "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."
"I am very proud to have worked with everyone associated with Trauson to build
the company from its beginning 27 years ago into the largest orthopaedic
products producer in China," said Chairman Fuqing Qian. "The orthopaedics market
in China has great growth potential. The combined scale, local and global
expertise, complementary product offerings and market breadth of Trauson and
Stryker will create significant competitive advantages in the increasingly
dynamic orthopaedic industry and provide a platform to fully realize the future
growth opportunities in China and globally."
The closing of the transaction is subject to customary conditions. Upon closing,
the transaction is expected to be neutral to Stryker's 2013 diluted net earnings
per share excluding acquisition and integration-related charges and accretive
thereafter. The transaction is expected to close by the end of the second
quarter of 2013.