Medical device maker Stryker to buy K2M Group for about $1.4 billion (Reuter) Medical device maker Stryker Corp (SYK.N) said on Thursday it will buy smaller rival K2M Group Holdings Inc (KTWO.O) for about $1.4 billion to bolster its spinal devices unit. Stryker’s offer of $27.50 per K2M share represents a premium of 26 percent to K2M Group’s Wednesday closing price. K2M shares rose 25 percent to $27.27 in premarket trading. “This acquisition underscores our commitment to the spinal market, which is the largest segment of orthopedics with significant unmet needs,” Stryker Chief Executive Officer Kevin Lobo said. K2M Group, which had an annual sales of about $300 million, has 83 products in the market that are used in complex spine, minimally invasive surgery and degenerative surgeries. Founded in 2004, K2M has emerged as a key player in the roughly $10 billion spinal market, Stryker said. Upon closing of the deal, K2M Chief Executive Eric Major will serve as president of Stryker’s spine division and lead the combined business. Citigroup Global Markets Inc served as financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP served as outside legal counsel to Stryker. Piper Jaffray & Co was K2M’s financial adviser, while Simpson Thacher & Bartlett LLP was its legal adviser.
Stryker acquires K2M for $1.4 billion (4.7 X sales)
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