In a bid to expand its footprint in the emerging markets,
Smith & Nephew plc
) recently decided to acquire certain assets of its Turkish
distributor Plato Grup. The acquisition will promote distribution
of Smith & Nephew's orthopedic reconstruction, trauma and
sports medicine products in Turkey.
Financial terms of the deal have not been disclosed. However,
the company expects to close this acquisition in the second half
Smith & Nephew is encouraged by the potential of this
deal, as Turkey is one of the fastest growing emerging markets.
Furthermore, Plato's successful record as well as reputation and
business relations will boost the company's growth in Turkey.
In recent times, Smith & Nephew has undertaken several
initiatives to strengthen its product portfolio and expand its
global foothold. In May 2013, the company announced an agreement
to take over Adler Mediequip Private Limited and with it the
brands and assets of Sushrut Surgicals Private Limited, a leader
in mid-tier, orthopedic trauma products for the Indian market.
The Adler Mediequip buyout gives Smith & Nephew an
opportunity to gain a foothold in the growing trauma market in
Last month, Smith & Nephew unveiled a strategic
partnership to promote its IV3000 range of cannula dressings from
its Advanced Wound Management (AWM) franchise in U.K. The
company's persistent focus on the AWM franchise has already begun
to yield positive results.
Smith & Nephew also stands to gain from an improved
economic overview in the U.S. and stability in the orthorecon
market. Meanwhile, the trauma and extremity businesses represent
Smith & Nephew currently carries a Zacks Rank #2 (Buy).
Other medical stocks such as
Wright Medical Group Inc.
) appear impressive. These stocks carry a Zacks Rank #1 (Strong
NATUS MEDICAL (BABY): Free Stock Analysis
RESMED INC (RMD): Free Stock Analysis Report
SMITH & NEPHEW (SNN): Free Stock Analysis
WRIGHT MEDICAL (WMGI): Free Stock Analysis
To read this article on Zacks.com click here.