Stryker Buys Trauson for $685 Million

Posted in Orthopedics by Bob Michaels on January 25, 2013

Stryker, a healthcare products manufacturer based in Kalamazoo, Michigan, announced that it had acquired Trauson, a Chinese spine-products manufacturer. In a conference call with investors, executives at the company detailed how the acquisition is part of the company’s emerging market strategy.

According to executives at Stryker, the purchase of Trausan will help the company expand its product portfolio in the orthopedic trauma market. While the company offers several products in the premium sector, it has limited products in the “value segment” of the Chinese orthopedic device market. With the new all-cash $685 million purchase, Stryker will have access Trauson’s “value segment” brands, patents and production facilities.

Trauson’s portfolio includes 120 medical devices currently available on the market. In addition, the company has an expansive distribution network and R&D pipeline.

Katherine Owen is the vice president of strategy at Stryker. In prepared remarks, she said, "To date, Stryker's presence in China has been focused on the premium segment, which is dominated by multinational players. However, the value segment of the market is growing at a faster rate, with local manufacturers the key players." She continued, "We have prioritized China and the value segment of the market in particular as a critical market, given that the device segment is growing at roughly 20% annually, with the overall market expected to more than double in the next 5 years."

References

www.stryker.com/en-us/corporate/PressNews/index.htm