Smith & Nephew to Acquire Centerpulse for $2.4 Billion

An agreement to combine their businesses to create a leading global orthopedics company has been announced by Smith & Nephew plc (London, UK) and Centerpulse AG (Zurich, Switzerland). The transaction will be effected by Smith & Nephew making an offer of around US$2.4 billion for Centerpulse and InCentive Capital AG, an investment company that holds 19% of Centerpulse.

The combined group will become the third largest global company in the orthopedics market and will derive about 74% of its sales from the orthopedic sector, which includes joint implants, trauma, arthroscopy, and spine and dental implants. The integration is expected to build on the geographical strengths of each business, to develop more rapidly the technologic capabilities of each, and to result in large cost savings. Centerpulse was formerly called Sulzer Medica.

"This transaction is an important strategic step for both companies,” said Chris O'Donnell, chief executive of Smith & Nephew. "It brings together two highly complementary business, transforming the scale of both of our orthopedics businesses, as well as providing an enhanced position in the rapidly growing spine segment. The common technology focus and excellent product and geographic fit between the two businesses will be a strong platform for value creation.”





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