Smith & Nephew Increase Market Share Through Acquisition
Smith & Nephew Plc plans to acquire Plus Orthopedics in a $889 million transaction. Smith & Nephew produces the largest number of knee and shoulder implants in Europe. The acquisition will expand the company’s presence in Germany and Asia and increase the company’s market share to twelve percent.
Over the past three years, Smith & Nephew lost bids to acquire Centerpulse AG of Switzerland and Biomet in the U.S. The Plus Ortho takeover doubles Smith & Nephew’s market share; they will be the fourth largest manufacturer of artificial knees and hips worldwide.
The acquisition includes a Chinese production plant and access to the Japanese marketshare. Smith & Nephew previously faced challenges in Japan obtaining product approval. Plus Ortho has a significant presence in Germany, the third largest orthopedic market in the world. Plus Ortho is one of the primary sources for artificial hips in Germany. The sale still requires antitrust review. See also coverage from Bloomberg.
Last year Smith & Nephew considered buying Biomet but the Warsaw manufacturer eventually agreed to be acquired by major private equity funds Blackstone Group, Goldman, Sachs & Co., Kohlberg Kravis Roberts and Texas Pacific Group.
March 12, 2007 Related topics: Mergers & Acquisitions, Orthopedic