Stryker (SYK) to Acquire Trauson in $764M All-Cash Deal

Stryker Corporation (SYK) and Trauson Holdings Company Limited announced that Stryker will make a voluntary general offer to acquire all the shares of Trauson for HK$7.50 per ordinary share for a total consideration of $764 million in an all cash transaction, representing an enterprise value of approximately $685 million. Trauson`s controlling shareholder, Luna Group, has undertaken to accept the offer from Stryker by tendering 61.7% of the Trauson shares towards the offer. Founded in China in 1986 by Chairman Fuqing Qian, Trauson had sales in 2011 approximating $60 million and is the leading trauma manufacturer in China and a major competitor in the spine segment. Stryker and Trauson have maintained a relationship under an OEM agreement for instrumentation sets since 2007. With this acquisition, Stryker will expand its presence in a key emerging market with a product portfolio and pipeline that is targeted at the large and fast growing value segment of the Chinese orthopaedic market.

The closing of the transaction is subject to customary conditions. Upon closing, the transaction is expected to be neutral to Stryker`s 2013 diluted net earnings per share excluding acquisition and integration-related charges and accretive thereafter. The transaction is expected to close by the end of the second quarter of 2013.

Barclays Capital served as Stryker`s exclusive financial advisor and Sullivan & Cromwell served as outside legal counsel for Stryker in connection with this transaction.

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