KALAMAZOO, Mich. (AP) — Medical device maker Stryker is buying orthopaedic products maker Trauson Holdings Co. for $764 million in order to expand its business in China.
Stryker Corp. said Thursday that it will pay 7.50 Hong Kong dollars (97 cents) per ordinary share.
Privately held Trauson was founded in China in 1986. The company's 2011 sales were approximately $60 million.
"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," Stryker President and CEO Kevin Lobo said in a statement.
Trauson's biggest shareholder, Luna Group, has agreed to tender 61.7 percent of the Trauson shares toward the offer, Stryker said. The acquisition is expected to close by the end of the second quarter.
The deal is expected to be neutral to Stryker's 2013 earnings per share, excluding acquisition-related charges. The transaction is anticipated to add to its earnings per share after that.
Last week Stryker reported fourth-quarter and full-year revenue that beat Wall Street's expectations, driven by its MedSurg medical equipment business and neurotechnology and spine business. The Kalamazoo, Mich.-based company also raised the low end of its full-year adjusted earnings forecast slightly and gave a 2013 revenue outlook above analysts' estimates.
Stryker's stock rose $1.71, or 2.9 percent, to $61.14 in afternoon trading. The shares hit $61.17 earlier in the session, its highest point since March 2011.