Stryker has closed on its $4 billion acquisition of Wright Medical. The move comes about a year after Kalamazoo, MI-based Stryker first announced it would acquire the orthopedics company.
The rationale behind the deal was that it would help strengthen Stryker's position in the fast-growing trauma & extremities segment. However – the acquisition hit a snag after the Federal Trade Commission expressed anti-trust law concerns.
But that changed after Stryker and Wright both agreed to divest all assets related to finger joint implants and STAR total ankle replacements. The companies have agreed to sell these assets to Carlsbad, CA-based DJO Global.
“This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advance innovation and reach more patients,” said Kevin Lobo, chairman and CEO, Stryker. “We welcome the Wright Medical team to Stryker and look forward to growing the combined business by delivering solutions that improve patient outcomes.”
During the company’s 3Q20 earnings call Lobo spoke very briefly about the potential impact of Wright on its trauma business, which brought in strong numbers.
“I think we've gotten good momentum across a lot of our businesses, you saw the trauma number, we posted a really strong number, they've launched a number of new products and feeling very good about that,” Lobo said according to a Seeking Alpha transcript of the call. “And that's frankly before Wright Medical kicks in. So, we're really excited about the momentum we're going to see across trauma and extremities next year.”