Stryker Corp. has agreed to acquire K2M Group Holdings, a key player in the spinal medical device industry, for $1.4 billion.
The Kalamazoo-based medical technologies company plans to acquire all of the shares of Leesburg, Va.-based K2M at $27.50 apiece, it said in a news release Thursday. The deal is expected to close in the fourth quarter.
In K2M, Stryker gets a company whose sales near $300 million. Styker expects the deal will strengthen its spine division and advance its reach in additive manufacturing. K2M reports having double-digit annual growth rate in the past five years.
"Stryker's established leadership in the orthopedic and neurosurgical market, combined with K2M's culture of innovation and leadership in complex spine and minimally invasive solutions, represent a powerful opportunity for Stryker to strengthen its leadership in the $10 billion global spine market," K2M Chairman, CEO and President Eric Major said in a statement.
Major is in line to become president of Stryker Spine. Bradley Paddock will relinquish that role and help Major transition into the position.
"This acquisition underscores our commitment to the spinal market, which is the largest segment of orthopedics with significant unmet needs," Stryker Chairman and CEO Kevin Lobo said in the release. "We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets."
"Stryker expands spinal division with $1.4 billion acquisition of K2M Group Holdings" originally appeared in Crain's Detroit Business.