Medtronic to Buy Chinese Medical Device Kanghui

Medtronic Inc (Fridley, MN, USA), the world's largest stand-alone maker of medical devices, has agreed to buy orthopedic device maker China Kanghui Holdings (Kanghui; Changzhou, China), in a bid to enter the Chinese medical device market.

The USD 816 million acquisition will provide Medtronic sustainable advantages in the fast-growing Chinese orthopedic segment, as well as a foothold in the emerging global value segment in orthopedics. Kanghui brings to Medtronic a strong product portfolio and new product pipeline in trauma, spine, and joint reconstruction. The combined portfolio expands Medtronic's offerings in orthopedic surgery and complements the company's existing presence in spine, neurosurgery, neuromodulation, advanced energy, and surgical navigation.

“This agreement is directly aligned with our corporate strategies of globalization and economic value,” said Omar Ishrak, chairman and CEO of Medtronic. “Kanghui represents a significant investment in China, accelerating Medtronic's overall globalization strategy with an established value segment distribution network and strong R&D and operational capabilities.”

“We are proud of the company we've built and recognize there is a tremendous opportunity to accelerate our global vision by building on Medtronic's size, scale and expertise as part of this combined organization,” said Libo Yang, CEO of Kanghui. “We look forward to bringing to Medtronic our local operating expertise in China, including our wide distribution network, strong local sales and marketing teams, local manufacturing and R&D, as well as our active presence across a number of value orthopedic product lines that are necessary for success in China and other emerging markets.”

Medtronic has spent more than USD 2.6 billion on overseas acquisitions, including a USD 221 million deal for a 15% stake in Shandong Weigao Group Medical Polymer (Weihai, China) in 2007, at the time the biggest maker of medical devices in China.

Related Links:
Medtronic Inc.
China Kanghui Holdings
Shandong Weigao Group Medical Polymer