) has closed its acquisition deal of U.S.-based developer of hip
arthroscopy products, Pivot Medical, Inc., announced last month.
However, stock price fell 1.0% following the revelation of the
closing of the all-cash deal as the acquisition is expected to be
neutral to Stryker's 2014 earnings per share, excluding
acquisition, integration-related and intangible amortization
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Pivot, a privately held business, sells products for hip
arthroscopy with operating facilities in Sunnyvale, Calif. It
specializes in hip arthroscopy procedures treating
femoroacetabular impingement syndrome (FAI). Pivot's platform of
instruments and implants provide efficient access to and restore
mobility of the hip with minimal incisions.
Pivot's offerings are expected to complement Stryker's existing
Sports Medicine portfolio and will provide Stryker's customers
with more comprehensive solutions to address certain challenges
faced during current Sports Medicine procedures.
Pivot is the latest addition to Stryker's acquisition spree. Last
month, the company also entered into a definitive agreement to
acquire German surgical tools firm, Berchtold Holding.
Berchtold, a privately-held business, is a provider of surgical
infrastructure equipment with operating facilities in Germany and
the U.S. The deal is also expected to be neutral to Stryker's
2014 earnings per share excluding acquisition,
integration-related and intangible amortization charges.
Berchtold's product portfolio comprises surgical tables,
equipment booms, and surgical lighting systems committed towards
maximizing efficiency and safety in operating rooms and ICUs.
Stryker will acquire Berchtold for an enterprise value of $172
The Berchtold acquisition is expected to boost Stryker's fast
growing endoscopy division and operating room equipment product
portfolio by adding complementary solutions. The deal will allow
Stryker to strengthen its portfolio and broaden its hospital
In December last month, Stryker completed its acquisition of MAKO
Surgical for $1.65 billion. The acquisition of MAKO allowed
Stryker to get hold of the latter's advanced robotic arm
technology known as Robotic Arm Interactive Orthopedic System, or
RIO. The technology helps orthopedic surgeons in performing knee
and hip joint replacement surgeries.
In Jan this year, Stryker also announced that it will buy Irvine,
Patient Safety Technologies
) for $120 million in order to utilize Patient Safety's device to
lessen the risk of surgical sponges being left in patients after
surgery. Recently, the company settled a lawsuit over the
impending deal where it has agreed to make additional disclosures
to appease shareholders.
Stryker currently carries a Zacks Rank #2 (Buy). Other players in
the medical products industry which are currently worth a look
) with a Zacks Rank #1 (Strong Buy) and
) with a Zacks Rank #2 (Buy).