Stryker set to purchase Small Bone Innovations
NEW YORK - Medical device maker Stryker said Monday it would buy bone and joint replacement maker Small Bone Innovations of Morrisville for up to $375 million in cash. Stryker said the deal would cost it as much as $285 million after tax benefits. Small Bone Innovations makes products that are used to treat conditions that affect the ankle, fingers, wrist, and elbow. Its main product is the STAR Ankle system, a total ankle replacement device with three pieces that does not need cement. Stryker said Small Bone Innovations had $48 million in product sales in 2014.
Small Bone Innovations is based in Morrisville, but also has facilities in France and Germany.
Stryker, of Kalamazoo, Mich., said it expected to complete the acquisition during the third quarter. The company said the purchase would reduce its 2014 net income by 2 cents per share, excluding one-time charges. Needham & Co. analyst Michael Matson said the purchase made Stryker more competitive in the foot and ankle device market, and STAR Ankle "fills a noticeable hole in Stryker's foot and ankle portfolio."