Stryker will buy implant maker Memometal for $162M
Medical device maker Stryker Corp. said Monday it will buy Memometal Technologies SA, a French company that makes foot and hand implants, in a deal worth up to $162 million.
Stryker said it will pay $150 million for Memometal. The all-cash deal also includes up to $12 million in payments that depend on the business achieving certain milestones.
Memometal makes hand, wrist, foot and ankle implants, and Stryker said its revenue totaled about $30 million in 2010. Memometal is based in Bruz, France, and has divisions in Germany and Switzerland. Its North American headquarters is in Memphis, Tenn.
Stryker, which had $7.32 billion in revenue in 2010, said the acquisition should close during the third quarter and will be neutral to its 2011 profit. In May, Stryker agreed to buy competitor Orthovita Inc. for $304 million in cash.
Mizuho Securities analyst Michael Matson told clients in a note that the worldwide market for extremity implants like Memometal's is worth about $1 billion, and it has been growing by more than 10 percent a year in recent years.
Shares of Stryker fell 90 cents, or 1.5 percent, to $59.30 in morning trading.