Mon, Jan. 5, 9:35 AM
Dec. 23, 2014, 2:23 PM
Nov. 24, 2014, 5:19 PM
- Stryker (NYSE:SYK) is considering making a bid for medical device manufacturer Smith & Nephew (NYSE:SNN) as a standstill period that prevents it from making an offer nears its end, according to reports out earlier.
- SYK is examining structuring the deal as a tax inversion, allowing it to move its legal address to the lower-tax U.K., but SYK is said to see strong strategic reasons to pursue a combination aside from tax advantages, and an inversion would not be essential to make the deal work.
- J.P. Morgan analysts think an acquisition could be at least 7%-8% accretive to SYK's 2016 EPS, rising to 11% in 2017 and 13% in 2018, assuming a 30%-35% premium relative to the unaffected price and that the acquisition is not an inversion; however, the firm thinks SNN is not looking to sell, and a combination would not gain easy U.S. or EU anti-trust approval.
- SNN gained 4.3% and SYK rose 1.4% in today's trading.
Sep. 23, 2014, 7:45 AM
- U.S. Treasury Secretary Jack Lew says that the Obama Administration is prepared to institute rules to stop tax inversion deals. If so, it will do so without a sliver of Republican support. Barclays analyst Michael Leuchten says, "Washington is playing for time. It makes them look good and it allows Congress to maybe get its act together and maybe do something on the legislative side."
- Mr. Lew's comments have spooked the market a bit. European companies already involved in deals or rumored to be targets are all under pressure due to the perception that some of the deals already announced may be at risk.
- The U.S. firm in the best position is Horizon Pharma (NASDAQ:HZNP). It completed its tax inversion transaction with Ireland-based Vidara Therapeutics last week.
- Related tickers: (MDT -0.4%)(COV -0.5%)(ABBV -0.6%)(SHPG -0.7%)(OTCQB:SHPGF -1.5%)(PFE -0.7%)(AZN -0.1%)(SNN +0.1%)(SYK -0.8%)
Jul. 21, 2014, 7:15 AM
- Bloomberg reports that, according to analysts, there are three ex-U.S. medical firms that should be high on the target acquisition list for tax inversion deals. Ireland-based Perrigo (NYSE:PRGO), Switzerland-based Actelion and U.K.-based Smith & Nephew Plc (NYSE:SNN) (OTCQB:SNNUF) are all attractive targets. Observers believe there will be more acquisitions consummated before Congress puts limits on the maneuvers.
- Stryker (NYSE:SYK) has been mentioned as a potential suitor for Smith& Nephew. Pfizer (NYSE:PFE) may make another run at AstraZeneca (NYSE:AZN) after the end of the cool-off period.
Jun. 30, 2014, 10:34 AM
Jun. 4, 2014, 2:25 PM
- Bloomberg reports Medtronic (MDT +3.8%) is mulling a buyout offer for knee/hip implant maker Smith & Nephew (SNN +8.6%). SNN and i-banks are said to be "aware of Medtronic's interest.".
- The news service cautions Medtronic's prep work is at an early stage, and that "no offer is imminent." Nonetheless, Medtronic is viewed as "a more serious bidder" for SNN than Stryker (SYK -0.1%), previously rumored to be weighing an offer.
- Sources state a deal would likely result in Medtronic using SNN's corporate shell to change its legal residence to the U.K., and thereby take advantage of lower tax rates. Medtronic, which has a large offshore cash balance, has previously said it's open to a tax-inversion deal.
- Shares of both companies have spiked higher following the report. SNN's market cap is currently at $17B.
May. 28, 2014, 10:46 AM| 1 Comment
Feb. 18, 2014, 10:14 AM
- Stryker (SYK -0.1%) agrees to acquire privately-held surgical equipment company Berchtold for an enterprise value of $172M.
- Berchtold, which has operations in Germany and the U.S., generated sales of ~$125M last year; the company’s products include surgical tables, equipment booms and surgical lighting systems.
- SYK expects the transaction to be neutral to its 2014 earnings excluding acquisition, integration-related and intangible amortization charges.
Dec. 31, 2013, 9:11 AM
Sep. 25, 2013, 10:36 AM
- Stryker (SYK -2.3%) "is paying 12.4x EV/sales [for MAKO] on our 2013 sales estimate which is relatively high," Wells Fargo's Larry Biegelsen notes, adding that "the 2 most recent ortho deals, MDT's acquisition of Kanghui and SYK's acquisition of Trauson went for 11.6x and 8.7x, on an EV/sales basis respectively."
- Nevertheless, Biegelsen thinks SYK is getting a "differentiated asset" — Wells has been bullish on MAKO since May. SYK is reiterated at Outperform.
- TheStreet's Antoine Gara notes that as of September 13, 22% of MAKO's float was sold short.
- More on the deal here
Sep. 25, 2013, 8:52 AM
Sep. 25, 2013, 8:14 AM
- Mako Surgical (MAKO) shareholders get welcome news, as Stryker (SYK) is set to acquire the medical device company for $30/share, an 86% premium to Tuesday's close.
- SYK CEO Kevin Lobo is particularly excited about what the deal means for the future of joint reconstruction: "Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience," he says.
Jan. 17, 2013, 6:15 AMStryker (SYK) agrees to acquire Hong Kong-based Trauson Holdings for $764M in a deal that will enable the U.S. medical-device maker to expand in the fast-growing Chinese orthopedic market. Luna Group, which owns 61.7% of Trauson's, will tender its stake. The deal comes after Stryker and Trauson entered into an OEM partnership for instrumentation sets in 2007. (PR) | Comment!
Oct. 16, 2012, 8:47 AMStryker (SYK) agrees to acquire privately-held Israeli firm Surpass Medical for $100M and up to an additional $35M in milestone payments. Surpass develops stent technology that uses a mesh design and delivery system to redirect blood flow away a brain aneurysm and allows a stable clot to form. (PR) | Comment!
Aug. 31, 2011, 4:11 PM
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