Smith & Nephew to Buy ArthroCare
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By HospiMedica International staff writers Posted on 11 Feb 2014 |
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British medical technology company Smith & Nephew (London, United Kingdom) plans to buy medical device maker ArthroCare (Austin, TX, USA) to strengthen its sports medicine business.
The purchase price of approximately USD 1.7 billion, with an enterprise value of USD 1.5 billion, follows a strategic rationale of creating a comprehensive resection and repair portfolio with potential growth prospects. The combination of ArthroCare’s radio frequency (RF) technology and Smith & Nephew’s strong mechanical blade portfolio will give customers a wider choice in resection technology. In joint repair, ArthroCare’s shoulder anchor innovation will complement Smith & Nephew’s strengths in knee repair.
The combined global footprint and channel presence will also add additional revenue opportunities from cross selling the combined portfolio and building upon shared capabilities in marketing and customer targeting. The adjacent Ear, Nose & Throat (ENT) business will also provide new growth opportunities. The acquisition will be subject to customary conditions, including a vote among ArthroCare shareholders and governmental clearances. ArthroCare will be integrated swiftly to minimize disruption to customers.
“ArthroCare and Smith & Nephew know each other well from our licensing and supply arrangements, and this is a natural transaction for both companies,” said David Fitzgerald, president and CEO of ArthroCare. “The Board believes that this transaction is in the best interest of our shareholders.”
“This is a compelling opportunity to add ArthroCare’s technology and highly complementary products to further strengthen our sports medicine business,” said Olivier Bohuon, CEO of Smith & Nephew. “Together, we will be able to generate significant additional revenue from the more comprehensive portfolio, combined sales force, and Smith & Nephew’s global footprint.”
Related Links:
Smith & Nephew
ArthroCare
The purchase price of approximately USD 1.7 billion, with an enterprise value of USD 1.5 billion, follows a strategic rationale of creating a comprehensive resection and repair portfolio with potential growth prospects. The combination of ArthroCare’s radio frequency (RF) technology and Smith & Nephew’s strong mechanical blade portfolio will give customers a wider choice in resection technology. In joint repair, ArthroCare’s shoulder anchor innovation will complement Smith & Nephew’s strengths in knee repair.
The combined global footprint and channel presence will also add additional revenue opportunities from cross selling the combined portfolio and building upon shared capabilities in marketing and customer targeting. The adjacent Ear, Nose & Throat (ENT) business will also provide new growth opportunities. The acquisition will be subject to customary conditions, including a vote among ArthroCare shareholders and governmental clearances. ArthroCare will be integrated swiftly to minimize disruption to customers.
“ArthroCare and Smith & Nephew know each other well from our licensing and supply arrangements, and this is a natural transaction for both companies,” said David Fitzgerald, president and CEO of ArthroCare. “The Board believes that this transaction is in the best interest of our shareholders.”
“This is a compelling opportunity to add ArthroCare’s technology and highly complementary products to further strengthen our sports medicine business,” said Olivier Bohuon, CEO of Smith & Nephew. “Together, we will be able to generate significant additional revenue from the more comprehensive portfolio, combined sales force, and Smith & Nephew’s global footprint.”
Related Links:
Smith & Nephew
ArthroCare
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