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Stryker Announces Definitive Offer to Acquire Trauson Holdings Company Limited



2013-01-17 11:16:14 -


Kalamazoo, Michigan - January 17, 2013 - Stryker Corporation (NYSE:SYK) and
Trauson Holdings Company Limited (SEHK:0325.HK) announced today that Stryker
will make a voluntary general offer to acquire all the shares of Trauson for
HK$7.50 per ordinary share for a total consideration of $764 million in an all
cash transaction, representing an enterprise value of approximately $685
million. Trauson's controlling shareholder, Luna Group, has undertaken to accept
the offer from Stryker by tendering 61.7% of the Trauson shares towards the
offer. Founded in China in 1986 by Chairman Fuqing Qian, Trauson had sales in
2011 approximating $60 million and is the leading trauma manufacturer in China
and a major competitor in the spine segment. Stryker and Trauson have maintained
a relationship under an OEM agreement for instrumentation sets since 2007. With
this acquisition, Stryker will expand its presence in a key emerging market with
a product portfolio and pipeline that is targeted at the large and fast growing
value segment of the Chinese orthopaedic market.

"The acquisition of Trauson is a critical step toward broadening our presence in
China and developing a value segment platform for the emerging markets through a
well established brand," said Kevin A. Lobo, President and Chief Executive
Officer. "The acquisition of a leading player in the Chinese trauma and spine
market underscores our commitment to strengthening our presence globally. With
its research and development expertise, manufacturing capabilities and strength
of its distribution network, Trauson is a compelling opportunity for Stryker to
drive growth in China and other emerging markets for years to come."

"I am very proud to have worked with everyone associated with Trauson to build
the company from its beginning 27 years ago into the largest orthopaedic
products producer in China," said Chairman Fuqing Qian. "The orthopaedics market
in China has great growth potential.  The combined scale, local and global
expertise, complementary product offerings and market breadth of Trauson and
Stryker will create significant competitive advantages in the increasingly
dynamic orthopaedic industry and provide a platform to fully realize the future
growth opportunities in China and globally."

The closing of the transaction is subject to customary conditions. Upon closing,
the transaction is expected to be neutral to Stryker's 2013 diluted net earnings
per share excluding acquisition and integration-related charges and accretive
thereafter. The transaction is expected to close by the end of the second
quarter of 2013.

Barclays Capital served as Stryker's exclusive financial advisor and Sullivan &
Cromwell served as outside legal counsel for Stryker in connection with this
transaction.

Stryker is one of the world's leading medical technology companies and is
dedicated to helping healthcare professionals perform their jobs more
efficiently while enhancing patient care. The Company offers a diverse array of
innovative medical technologies including reconstructive implants, medical and
surgical equipment, and neurotechnology and spine products to help people lead
more active and more satisfying lives. For more information about Stryker,
please visit www.stryker.com.

Contacts

For media inquiries please contact:
Yin Becker, Stryker Corporation, 201-831-5000 or yin.becker@stryker.com

For investor inquiries please contact:
Katherine A. Owen, Stryker Corporation, 269-385-2600 or
katherine.owen@stryker.com


Forward-Looking Statements

This press release contains information that includes or is based on forward-
looking statements within the meaning of the federal securities law that are
subject to various risks and uncertainties that could cause our actual results
to differ materially from those expressed or implied in such statements. Such
factors include, but are not limited to: weakening of economic conditions that
could adversely affect the level of demand for our products; pricing pressures
generally, including cost-containment measures that could adversely affect the
price of or demand for our products; changes in foreign exchange markets;
legislative and regulatory actions; unanticipated issues arising in connection
with clinical studies and otherwise that affect U.S. Food and Drug
Administration approval of new products; changes in reimbursement levels from
third-party payors; a significant increase in product liability claims; the
ultimate total cost with respect to the Rejuvenate and ABG II matter; the impact
of investigative and legal proceedings and compliance risks; resolution of tax
audits; the impact of the federal legislation to reform the United States
healthcare system and the 2.3 percent medical device excise tax; changes in
financial markets; changes in the competitive environment; our ability to
integrate acquisitions, including the acquisition of Trauson Holdings Company
Limited; and the Company's ability to realize anticipated cost savings as a
result of workforce reductions and other restructuring activities. Additional
information concerning these and other factors are contained in our filings with
the U.S. Securities and Exchange Commission, including our Annual Report on Form
10-K and Quarterly Reports on Form 10-Q.




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Source: Stryker Corporation via Thomson Reuters ONE
[HUG#1671058]


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