Stryker Adds Medical Device-Maker Synergetics in Buying Spree
Stryker Corp. (NYSE: SYK) is buying the entire neurosurgery tools portfolio of Synergetics USA Inc. (Nasdaq: SURG) for an undisclosed sum.
The deal is the second announced in February by Stryker. On Feb. 1, the Kalamazoo, Michigan, medical device maker announced it would buy the Sage Products LLC medical and surgery products maker for $2.78 billion from Madison Dearborn Partners private equity firm
The neurosurgery portfolio of Synergetics, based in O'Fallon, Missouri, includes the Malis generator for electrosurgery and Spetzler Malis disposable forceps, along with Sonopet tips for a handheld tissue cutting device, which is already sold under the Stryker brand. The Synergetics portfolio had $31 million in sales in 2015.
The Synergetics portfolio will complement Stryker’s neuro, spine and ear-nose-throat business, and help advance the company’s strategy of expanding its neurosurgical offerings, says Timothy Scannell, president of Stryker’s surgery and neuro-technology group. The all-cash transaction is expected to close before the end of March.
February has been a busy month for medical devices deals. In addition to Stryker’s deals, Medtronic plc (NYSE: MDT) is buying kidney treatment company Bellco from Charme Capital Partners, an Italian private equity firm. Also TE Connectivity Ltd. (NYSE: TEL) medical equipment maker agreed to pay the Permira Advisers buyout firm $895 million cash for health-care device company Creganna Medical.