Styker acquires two companies as it seeks broader markets

Stryker Corp. has been broadening its markets with two purchases in recent weeks.

In an all cash transaction for $1.5 billion, Stryker has acquired the assets of the Neurovascular division of Boston Scientific.

Boston Scientific Neurovascular is a global leader in the approximately $900 million worldwide neurovascular market. Its products are used for the minimally invasive treatment of hemorrhagic and ischemic stroke. Hemorrhagic strokes involve bleeding in the brain and bleeding between the inner and outer layers of the tissue covering the brain. An ischemic stroke is death of an area of brain tissue resulting from an inadequate supply of blood and oxygen due to blockage of an artery.

Under the terms of the agreement, Boston Scientific will receive $1.4 billion at closing with additional consideration of up to $100 million payable as specified milestone events are achieved, including the commercialization of the next generation of detachable coils used to treat hemorrhagic stroke, and the transfer of specific manufacturing facilities related to the Neurovascular operation to Stryker. The transfer is anticipated to occur over a 24-month period following the closing.

With sales in 2009 of $348 million, Boston Scientific Neurovascular provides a wide offering of devices for the treatment of neurovascular disease, including detachable coils, stents, microcatheters and guidewires.

The strategy to move into the neurovascular market is attractive to Stryker becauase it sees it as “one of the fastest growing and most innovative sectors in medical technology,” says Stephen P. MacMillan, Chairman, President and Chief Executive Officer of Stryker.

The same week Styker also acquired privately held Porex Surgical, a division of Porex Corp. Porex Surgical develops, manufactures and distributes porous polyethylene (PPE) products that can be implanted in the body for use primarily in reconstructive surgery of the head and face.

Its product portfolio and customer base complements Stryker’s existing offering in the craniomaxillofacial market.

Terms of the transaction were not disclosed.

The acquisition allows Stryker to broaden its product offering to both patients and clinicians, says MacMillan.

Writer: Kathy Jennings
Souce: Stephen P. MacMillan, Chairman, Stryker Corp.