Stryker to sell US spinal implants business to Viscogliosi Brothers

PORTAGE, Michigan - Medical (TASE:PMCN) technology company Stryker (NYSE:SYK), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $151 billion and annual revenue of $22 billion, has reached a definitive agreement to divest its U.S. spinal implants business to Viscogliosi Brothers, LLC, an investment firm specializing in the neuro-musculoskeletal industry. According to InvestingPro data, Stryker maintains a "GREAT" financial health score, with strong profitability metrics and consistent dividend growth. The new entity, VB Spine, LLC, is expected to become a strategic partner to Stryker, maintaining exclusive access to certain Stryker technologies for spine procedures.

Kevin A. Lobo, Stryker’s CEO, expressed confidence that the spinal implants business will flourish independently, emphasizing the potential for growth and value creation for stakeholders. The Viscogliosi Brothers echoed this sentiment, highlighting the opportunity for focused innovation and commercial execution.

The agreement also includes a binding offer for Stryker’s spinal implants business in France, with the sale of its spinal implants business in other international markets anticipated, subject to regulatory approvals. The U.S. transaction is slated for completion in the first half of 2025, pending customary closing conditions. InvestingPro analysis indicates the stock is currently trading near its 52-week high, with analysts maintaining positive forecasts for 2024. Get access to 13+ additional ProTips and comprehensive valuation metrics with an InvestingPro subscription.

Until the transaction is finalized, Stryker’s U.S. spinal implants business and VB Spine will operate independently. Barings, LLC is backing Viscogliosi Brothers as an investor and financial partner in this transaction.

Stryker is known for its contributions to medical technology, impacting over 150 million patients annually with its products and services. Viscogliosi Brothers, established in 1999, has a history of fostering innovation in healthcare, particularly within the spine industry.

The information for this report is based on a press release statement.

In other recent news, Stryker Corporation is set to acquire Inari Medical for $80 per share in cash, a strategic move that will bolster its presence in the high-growth peripheral vascular segment. This acquisition, valued at approximately $4.9 billion, was endorsed by TD Cowen and BofA Securities, both of which reiterated a Buy rating on Stryker’s stock. The transaction is expected to conclude by the end of the current quarter, with further details to be revealed during Stryker’s fourth-quarter earnings call.

Analysts anticipate a slight earnings per share dilution in the first year following the deal, which should neutralize by the second and third years. The acquisition is consistent with Stryker’s growth-focused strategy, which historically has been beneficial for the company’s stock performance.

In addition to the acquisition, RBC Capital Markets has also expressed a favorable outlook for Stryker, naming it as one of their top large-cap picks for 2025. These developments underscore Stryker’s commitment to growth and innovation in the medical technology sector, as it continues to align with its long-term objectives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.