Smith & Nephew to buy ArthroCare in $1.5B deal

Published on NewsOK Modified: February 3, 2014 at 8:02 am •  Published: February 3, 2014
Advertisement
;

British medical technology company Smith & Nephew plans to buy U.S. medical device maker ArthroCare in a $1.5 billion deal that it says will strengthen its sports medicine business.

Smith & Nephew said Monday it will pay $48.25 in cash for each share of ArthroCare Corp., which is based in Austin, Texas.

That's a premium of about 6 percent to its closing price of $45.38 on Friday.

Smith & Nephew PLC said ArthroCare's expertise in shoulder joint repair will complement its strength in knee repair. CEO Olivier Bohuon said in a statement that the broader product portfolio and the combined sales force will help generate "significant additional revenue."

ArthroCare has 35.4 million shares outstanding, counting options and restricted stock, according to Smith & Nephew spokesman Charles Reynolds. Smith & Nephew values the deal at $1.7 billion counting ArthroCare's cash. It expects the acquisition to close by the middle of the year.

ArthroCare makes surgical devices, instruments and implants and employs about 1,800 people.

| |

Advertisement


Trending Now



AROUND THE WEB

  1. 1
    Conservative Activist Claims Women Paid The Same As Men Won't Find Husbands
  2. 2
    Report: Thunder to open playoffs on Saturday
  3. 3
    Former Sonics guard Gary Payton: Durant, Westbrook 'the new era'
  4. 4
    GOP consulting firm employee starts 'Boats 'N Hoes PAC'
  5. 5
    Why One Man Traveled Almost 3,000 Miles To Take On The Federal Government At A Ranch In Nevada
+ show more